A nine-session win streak for the S&P 500 was broken last Monday and the S&P shed 0.5% while the Nasdaq lost 0.3%. The week was a busy one with corporate results and macro news, yet the market seemed a bit tired after the recent rally.
The best sectors this week were the industrials (+1.1%), consumer discretionary (+0.8%), and utilities (+0.5%) sectors. The worst-performing sectors were the health care (-4.3%), communication services (-2.4%), and consumer staples (-1.1%) sectors. The health care sector was negatively impacted by President Trump announcing impending pharmaceutical tariffs, expected to be detailed within two weeks.
On Tuesday Treasury Secretary Scott Bessent said that some trade deals could be announced as early as this week and that up to 90% of deals could be completed by the end of the year. This was followed on Thursday when the administration announced a trade deal with the UK, fueling optimism that deals will be reached with other countries and that the tariffs may be less impactful than feared on the global economy. The following day, the markets perked up once again with news of a trade meeting during the upcoming weekend between U.S. and Chinese officials in Switzerland. Finally, on Sunday Secretary Bessent announced a deal with China though almost no details were given.