Economic Data and Market Highlights
Stocks rose in the abbreviated trading week, the Russell 3000 advancing 1.85%. International stocks, as represented by the MSCI EAFE Index, rose 91 basis points. PCE inflation came in roughly as expected, with Core at 2.5%. The 10-year while declining for the week, rose 24.5 basis points for the month of May. Tariff fears eased a bit in the week, but concerns grew related to the “Big Beautiful Bill” as it proceeded to the Senate for review. Several GOP senators have already noted they will not be voting for it because it will, in their view, expand the debt.
April Pending Home sales fell 6.3% month over month versus a -1% estimate. March results were also revised down by roughly 60 basis points.
The markets got some insight into the long-awaited update related to Fannie Mae and Freddie Mac, which went into Federal conservatorship as a result of the Great Financial Crisis. President Trump would like to sell shares in both agencies, but new legislation would be required. Questions remain as to whether the US government would still guarantee mortgages and how the sale of shares may impact mortgage rates. The current 30-year mortgage rate stands at 6.98%, down from its 52-week high of 7.5%.
The Past Week’s Notable US data points (with revisions)
The Upcoming Week’s notable US data points
Source: Morningstar
Data Source: Financial News London, Financial Times, Morningstar, MarketWatch, Standard & Poor’s, and the Wall Street Journal.
Authors:
Jon Chesshire
Michael McNamara