Investing

This Week in the Stock Market: Lingering Trade Tensions Could Keep Things Interesting

Welcome to Markets on Monday, where we preview what’s going on in the stock market this week.

At the start of last week, the S&P 500 took the biggest tumble it had since January, only to mostly recoup those losses by week’s end. But then came news trade talks have stalled between the U.S. and China.

This ongoing trade spat is to blame for much of the market’s bumpiness this month. Each of the two countries raised tariffs on the other’s goods in recent weeks.

While uncertainty surrounding a possible deal lingers, investors are keen for some good news—like a report Friday showing confidence among U.S. consumers about the economy and their own financial situations is the highest it’s been in 15 years.

This week, investors will get details from the most recent meeting of Federal Reserve policymakers, along with a few reports about the U.S. housing market. Here’s what’s happening and what it could mean for you.

What is the Fed’s interest rate plan?

The Federal Reserve’s Open Market Committee meets eight times a year, and investors closely track those details to get a sense of where interest rates might be headed. On Wednesday, we’ll get a look at the minutes from the committee’s most recent meeting. Folks on Wall Street will analyze every word, including how language has changed from prior meetings.

The Fed has said it doesn’t plan to increase interest rates this year, and investors increasingly expect that policymakers could lower rates. They’re even betting there’s about a 25% chance the Fed will cut rates by July, and the odds of this happening by year’s end are at more than 70%. This would be significant because the Fed hasn’t cut interest rates since 2008—and it’s a move they usually make to stimulate economic growth. Lowering interest rates would make it cheaper for consumers to borrow money, but savers will see their rates fall, too.

The Fed doesn’t meet again until mid-June, but investors try to predict its next move, so they’ll be looking for any hint of a shift in policy.

More from Grow:

A check-in on the housing market

Americans are quite optimistic about the economy, according to a survey from the University of Michigan released last week. It was mostly conducted before U.S.-China trade tensions heated up, though.

In less cheering consumer news, a separate report last week showed that Americans cut back on spending in April.

The housing market is perhaps one of the best gauges of confidence, because consumers need to feel optimistic about their financial situations to justify such a big expense. This week, we’ll see monthly reports on sales of both new and existing homes, and weekly numbers on mortgage applications.

Recent reports on the housing industry have been mixed. There are some signs the market is cooling, but there has also been a rebound in sales that’s made homebuilders more optimistic. Investors are also eyeing a wave of potential millennial homebuyers.

Check out Curious About Investing in an IPO Like Uber or Beyond Meat? Here's What You Need to Know

acorns+cnbcacorns cnbc

Join Acorns

GET STARTED

About Us

Learn More

Follow Us

All investments involve risk, including loss of principal. The contents presented herein are provided for general investment education and informational purposes only and do not constitute an offer to sell or a solicitation to buy any specific securities or engage in any particular investment strategy. Acorns is not engaged in rendering any tax, legal, or accounting advice. Please consult with a qualified professional for this type of advice.

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results. Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts. It is not possible to invest directly in an index.

Advisory services offered by Acorns Advisers, LLC (“Acorns Advisers”), an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Brokerage and custody services are provided to clients of Acorns Advisers by Acorns Securities, LLC (“Acorns Securities”), a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Acorns Pay, LLC (“Acorns Pay”) manages Acorns’s demand deposit and other banking products in partnership with Lincoln Savings Bank, a bank chartered under the laws of Iowa and member FDIC. Acorns Advisers, Acorns Securities, and Acorns Pay are subsidiaries of Acorns Grow Incorporated (collectively “Acorns”). “Acorns,” the Acorns logo and “Invest the Change” are registered trademarks of Acorns Grow Incorporated. Copyright © 2019 Acorns and/or its affiliates.

NBCUniversal and Comcast Ventures are investors in Acorns Grow Incorporated.