Stock markets drop for the fourth straight week over trade war fears
Stocks dropped sharply this week as increased trade tensions with China led to a fourth straight week of losses. To make investors more depressed, President Trump announced that he would take emergency powers and place a 5% tariff on all goods from Mexico beginning June 10, which will increase over time to 25% unless Mexico does something to stem illegal immigration. That announcement caused another steep decline on Friday.
All in all, the DOW and S&P 500 declined 7%, and the NASDAQ declined 8% in May, its worst May since 2010.
The Dow Jones Industrial Average closed the week at 24,815.04, down 3.0% from 25,585.69 last week, and down 7% from 26,554.39 on April 30. It’s up 6.4% year-to-date.
The S&P 500 closed the week at 2,752.06, down 2.6% from 2,826.06 last week, and down 7% from 2,943.03 on April 30. It’s up 9.8% year-to-date.
The NASDAQ closed the week at 7,453.15, down 2.4% from 7,637.01 last week, and down 8% from 8,161.85 on April 30. The NASDAQ is up 12.3% year to date.
Treasury bond yields at lowest levels in 21 months
Trade and tariff fears caused investors to sell off stocks and move to the safety of low-yielding
Mortgage rates dropped to 18-month lows this week
U.S. pending home sales fall slightly for the 16th straight month in April
Although really just a slight drop, the number of pending existing homes sold have declined on a year over year basis for 16 straight months, according to data released Thursday by The National Association of Realtors. They reported that pending existing home sales in April dropped 1.5%
Existing home sales are calculated by the number of existing homes that went under contract and were reported to MLS and Realtor Associations throughout the country. Existing sales include re-sale single-family homes, town-homes, condominiums, and co-ops.
Following the announcement, NAR Chief Economist stated that “it’s inevitable that sales turn higher in a few months.” He cited increased demand, a strong economy, and far lower interest rates than we have seen over the last 16 months to support his optimistic view.
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