Markets Cringe At Returned Tariff Talk
The Weekly Update
Week of May 27th, 2025
By Christopher T. Much, CFP®, AIF®
Stocks moved lower last week as fiscal fears and fresh tariff threats loomed over market sentiment.
The Standard & Poor’s 500 Index fell 2.61 percent, while the Nasdaq Composite Index dropped 2.47 percent. The Dow Jones Industrial Average slid 2.47 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 1.14 percent.
Stocks Slip
On Monday, stocks were under a bit of pressure after credit rating agency Moody’s downgraded the U.S. as an issuer of government bonds.
Stocks remained under pressure midweek as Treasury yields moved higher with the 30-year bond hit a 19-month high. Investors fretted about the budget deficit; some feared the deficit would be made worse by the spending bill winding its way through Congress. After the House of Representatives approved the bill, bond yields backed off their highs and stocks went sideways.
On Friday, stocks dropped …