
The Rhino Report - Markets Rise Amid Mixed Economic Signals
Markets rose this week despite mixed economic data. The S&P 500 gained ground as investors responded positively to a significant reduction in U.S.-China tariffs, where duties on Chinese imports dropped from 145% to 30% while China reduced tariffs on U.S. goods from 125% to 10%. Inflation continued its moderating trend with April's CPI at 2.31%, though core categories remained stubborn. Producer prices posted their largest monthly decline since 2020, falling 0.47%, potentially signaling weakening demand. Consumer sentiment hit near-record lows, and homebuilder confidence declined sharply despite local markets showing resilience. For investors, this environment of softening inflation alongside policy uncertainty and fragile consumer confidence suggests maintaining diversification and vigilance as prudent strategies in the near term.