Global markets were mixed last week as US large-cap tech stocks lagged, weighed down by new chip export restrictions to China. The Dow, S&P 500, and Nasdaq fell, while small- and mid-cap indexes rose. Fed Chair Powell warned of higher inflation and slower growth from rising tariffs, suggesting no near-term rate cuts. Housing market data showed builder sentiment stayed weak, and housing starts fell over 11% y/y in March. Retail sales jumped 1.4% in March as consumers rushed purchases ahead of new tariffs. Treasuries rebounded, with yields falling after Powell’s hawkish remarks. Municipal bonds also showed improved stability.
European stocks rose, with the STOXX Europe 600 up 3.93% over the seven days ending April 17, helped by delayed US tariffs and hints of more ECB rate cuts. Major indexes also gained: Italy’s FTSE MIB rose 4.97%, Germany’s DAX 3.13%, France’s CAC 40 2.24%, and the UK’s FTSE 100 4.58%. The ECB cut its key rate to 2.25% and signaled more cuts ahead, warning that trade uncertainty is hurting growth. In the UK, inflation slowed to 2.6% in March, below expectations, while the labor market softened with fewer jobs, though wage growth stayed strong at 5.9%.
