Read the highlights of this week’s commentary from Helios:
- Markets rallied after Fed Chair Powell’s Jackson Hole speech took a surprisingly dovish tone. He warned of rising risks to employment and signaled the Fed may look past tariff-driven inflation if it proves temporary. Markets cheered the shift, with the S&P 500 logging its best day since May and finishing just 0.04% below a record high, as investors priced in greater odds of near-term rate cuts.
- Weekly jobless claims rose by 11,000 to 235,000, the highest in nearly three months, while continuing claims climbed to 1.97 million, the most since 2021. Manufacturing shed 11,000 jobs in July, and the federal government has cut 84,000 positions this year. The increase in claims points more to weak hiring than a surge in layoffs, leaving unemployed workers sidelined for longer.
- Canada will lift many retaliatory tariffs on U.S. goods covered by USMCA, impacting around $21 billion worth of products, effective September 1, 2025. Tariffs on autos, steel, and aluminum will remain. The move may set the stage for other trading partners to ease tensions as well, raising hopes that trade disputes could be resolved and trade flows normalized.
Want to learn more about Helios Quantitative Research? Click Here to schedule a meeting with one of our representatives!