Trade tensions continued as uncertainty surrounding the implementation of tariffs in early July drove volatility higher.
Some economists believe that the Fed’s reluctance to lower rates may jeopardize economic momentum as consumer expenditures continue to be sensitive to elevated interest rates.
Consumers helped buoy markets in April as shoppers rushed to spend on autos, sports equipment, and electronics in anticipation of rising prices brought about by tariffs.
Turmoil sweep throughout the global markets as the tariff announcements were broader and more significant than expected.
The administration confirmed that the U.S. would impose a 25% tariff on goods and services imported from Canada and Mexico effective early April, including an additional 10% tariff on Chinese imports.
Proposed tariffs by the administration led to elevated volatility and concern in the domestic and international markets.
Presidential campaigning and expectations about the Fed’s direction with rates enthralled the markets in 2024.
Financial markets and analysts are anxiously awaiting cabinet and agency appointees by the incoming administration, which shape policy and the possible direction of various sectors.
Uncertainty leading up to the presidential election brought about volatility in the equity markets while bonds were weighed by a resurgence in inflation fears.
Uncertainty among global markets rose as conflict in the Middle East elevated tensions and roiled energy markets.
There is a growing concern that the Fed may not have been as responsive as it should have in responding to slowing economic data numbers, prompting some economists and analysts to increase the possibility of an economic slowdown or recession.
Volatility returned to the equity markets in July as earnings became a focal point for technology and other growth oriented sectors.
