Week in Review: US–China Tariff Pause Lifts Market Sentiment

U.S. retail sales growth slowed sharply in April, with headline sales up just 0.1% after a 1.7% surge in March. The fading boost from front-loaded auto purchases ahead of tariffs weighed on momentum, while broader consumer spending softened amid rising economic uncertainty. Core retail sales, which align closely with the consumption component of GDP, fell 0.2%, signalling a more cautious consumer heading into the second quarter.

Market Moves of the Week

Chart of the Week:

US inflation eased for the third consecutive month in April, despite a peak in import tariffs. While lower inflation typically signals room for Fed rate cuts, rising optimism about avoiding a recession has tempered expectations for monetary easing. Credits: Strategic IQ