From the desks of Stanley Katz & Lauren Madera
SUMMER, SUMMER, SUMMERTIME
TIME TO SIT BACK AND UNWIND
— DJ JAZZY JEFF & THE FRESH PRINCE
The three major U.S. stock market indices posted solid gains this week (i.e., DJIA: +1.17%, S&P 500: +1.50%, Nasdaq: +2.18%). Capital Group analysts have posed an increasingly constructive outlook. Their research suggests that economic growth projections across multiple regions appear to be stabilizing (and even revised up) while trade negotiations progress. Emerging markets have proven particularly resilient, with several economies outperforming expectations. This international strength provides a supportive backdrop for U.S. markets, as interconnected global growth helps sustain investor confidence even amid domestic policy debates.
Positive market sentiment has been reinforced by encouraging corporate results. Argus Research reports that first-quarter earnings season significantly “outperformed what we regarded as low-ball expectations.” Companies delivered approximately 14% annual growth despite navigating a “tumultuous” period marked by trade policy uncertainty. The S&P 500’s remarkable 6.2% gain in May alone—its best month since November 2023—has effectively brought stocks back to year-opening levels after steep, tariff-induced declines. While Argus has trimmed their S&P 500 earnings estimates for 2025 and 2026 to reflect potential tariff impacts, the strong first-quarter performance demonstrates corporate America’s ability to balance cost pressures and protect revenue.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Capital Group:
Argus:
J.P. Morgan Asset Management:
State Street:
Fidelity:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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