The S&P 500 index rose 1.7% last week as earnings season kicked off on a largely positive note and President Donald Trump said his proposed 100% additional tariffs on China are “not sustainable.”
The index is now down 0.4% for the month, but up 13% for the year.
U.S. stocks fell in the previous week as Trump said he was considering “a massive increase” in tariffs on Chinese products coming into the U.S. This past Friday, stocks moved in the opposite direction as the U.S. president said the additional tariffs were “not sustainable.” The comments provided some relief at a time when tariff worries have been weighing on investor sentiment.
Also giving the market a lift, Q3 earnings reports began coming in largely above analysts’ mean estimates. JPMorgan Chase, Goldman Sachs Group, Wells Fargo, and Johnson & Johnson were among the companies that released better-than-expected quarterly results last week.
All of the S&P 500’s sectors rose on a weekly basis. Communication services had the largest percentage increase, up 3.6%, followed by a 3.4% climb in real estate, a 2.1% rise in technology and a 2% advance in consumer discretionary. The slimmest gain was recorded in financials, which edged up just 0.02%.
Many large companies are expected to release quarterly results this week, including Tesla, Netflix, GE Aerospace, Coca-Cola, Philip Morris International, International Business Machines, and more.
Economic data may be light if the U.S. government shutdown continues. The shutdown has caused a delay in closely watched government data releases including the September jobs report.
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