This week was a strong one for the US capital markets, and the Nasdaq index led the way again this week, posting a gain of 4.2% for the week. This puts the Nasdaq up 9.5% for the year, while the S&P500 is at 4.2% and the Dow is at 2.5%.
Oil continues to stay strong and is up to $62.10 per barrel. The Dollar Index went above 90 on a stronger dollar, and gold was flat for the week.
In economic news, the jobs data came out and February showed that 313k jobs were added in the US economy, which was the most since July 2016. Unemployment remains at historic lows of 4.1%. The big news this week was the tariffs signed by President Trump on steel and aluminum imports. Exemptions from the tariffs were given to Canada and Mexico, and the markets did not react well to the news initially, but other economic data and sentiment prevailed to push stocks higher.
On the political side, Gary Cohn resigned as director of the National Economic Council as he did not agree with the President’s tariffs, desiring for open and free-trade. Also, the markets reacted positively to news that North Korean President Kim Jong Un and President Trump agreed to sit down and discuss denuclearization of North Korea.
Overall, it was a good week for the US capital markets. 2018 has been a volatile year thus far, and I suspect the swings will continue to a trend to the upside.
Good luck,
Brian