Markets had a strong week, with major indexes climbing on encouraging news about trade talks and a favorable inflation report.
The S&P 500 gained 5.27%
The Nasdaq jumped 7.15%
The Dow Jones Industrial Average rose 3.41%
The MSCI EAFE Index, which tracks international developed markets, was up 0.80%
Canada’s TSX also saw positive momentum, following the global trend
What Drove the Gains?
Stocks started the week on a high note after the U.S. and China agreed to pause additional tariffs, calming trade tensions. On Tuesday, markets got another boost from a report showing the slowest inflation increase in four years—good news for both consumers and investors.
Tech stocks led the way, helping the S&P 500 move into positive territory for the year. By Friday, the Dow had also erased its year-to-date losses. Even though consumer sentiment came in lower than expected at the end of the week, markets continued to perform well.
Overall, investors saw solid returns across the board, capping off a five-day winning streak for the S&P and Nasdaq.
Source: YCharts.com, May 17, 2025. Weekly performance is measured from Monday, May 12, to Friday, May 16. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
All Eyes on Economic Data
Recent reports show that inflation remained mild in both retail prices (Consumer Price Index) and wholesale prices (Producer Price Index). This came as little surprise, as most economists didn’t expect the new tariffs to have an immediate effect on prices.
Retail sales rose slightly, in line with expectations. However, there were some early signs that tariffs may be starting to affect the economy—specifically in industrial production and new housing starts, which both showed some weakness.
Going forward, investors will be watching upcoming economic data closely to see if tariffs begin to have a bigger impact.
This Week: Key Economic Data
Monday: New York Fed President John Williams, Dallas Fed President Lorie Logan, and Atlanta Fed President Raphael Bostic speak. Leading Economic Indicators. E-Commerce Retail Sales.
Tuesday: Richmond Fed President Thomas Barkin, Raphael Bostic, and Fed Governor Adriana Kugler speak. Financial Markets Conference.
Wednesday: Thomas Barkin speaks. 20-Year Treasury Bond Auction.
Thursday: Existing Home Sales. Jobless Claims (weekly). PMI Composite—Services and Manufacturing. John Williams speaks. Fed Balance Sheet.
Friday: New Home Sales. Kansas City Fed President Jeff Schmid and Fed Governor Lisa Cook speak.
Source: Investors Business Daily - Econoday economic calendar; May 16, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: The Home Depot, Inc. (HD), Palo Alto Networks, Inc. (PANW)
Wednesday: The TJX Companies Inc. (TJX), Lowe’s Companies, Inc. (LOW)
Thursday: Intuit Inc. (INTU), Analog Devices, Inc. (ADI), The Toronto Dominion Bank (TD), Workday, Inc. (WDAY)
Source: Zacks, May 16, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
"People always call it luck when you've acted more sensibly than they have."
– Anne Tyler
What can go down a chimney when it is down but can’t go up through a chimney when it is up?
Last week’s riddle: A word appears, and six letters it contains. Subtract only one, then twelve remains. What is this word?
Answer: Dozens
Joanne's husband, Jonathan and son, Matthew, at the White Rock pier. Fun fact this is the longest pier in Canada!
Footnotes and Sources
1. WSJ.com, May 16, 2025
2. Investing.com, May 16, 2025
3. CNBC.com, May 12, 2025
4. WSJ.com, May 13, 2025
5. CNBC.com, May 15, 2025
6. MarketWatch.com, May 16, 2025
7. WSJ.com, May 13, 2025
8. MarketWatch.com, May 16, 2025
9. IRS.gov, September 11, 2024
10. Healthline, December 12, 2024
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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