Putting the S&P 500’s Strong Three-Year Run in Context

/in , /by

What’s in Today’s Report:

  • Putting the S&P 500’s Strong Three-Year Run in Context
  • The Q4 2025 Sevens Report Quarterly Letter Will Be Delivered Today to Subscribers

Futures are starting the new year with moderate gains following more tariff reductions.

The Trump administration reduced tariffs on several import categories including pasta and furniture as the aggregate tariff burden on the economy declined further.

Economically, EU and UK Flash manufacturing PMIs both missed expectations, falling to 48.8 vs. (E) 49.2 in the EU and 50.6 vs. (E) 51.2 in the UK.

Today focus will be on economic data via the Flash Manufacturing PMI (E: 51.8) and markets will want to see a Goldilocks reading near expectations to start off the new year.  A very weak reading (close to 50) or a very strong number (above 53) would either 1) Slightly increase slowdown worries or 2) Reduce rate cut expectations, both negatives for the markets.

 

Tags: ,