Last week, nearly all sectors of the S&P 500 weakened. The financial sector lost significant ground on the 4th (-4.67%), with stocks like Citi and Wells Fargo showing very poor performance. In the technology sector, the biggest setbacks were seen in Intel (-6.2%) and Tesla (-4.5%). President Donald Trump’s tariff policies can be seen as an act of ‘throwing stones on his own roof’ as they create uncertainty, which has led to a deterioration in macroeconomic fundamentals. At the beginning of the week, the Atlanta Federal Reserve revised its growth expectations for the US economy in the first quarter of 2025 downward, now estimating a contraction of 2.8% on an annualized quarter-on-quarter basis. Last Friday, it estimated a contraction of 1.5%, and just two weeks ago, it projected a growth of 2.3%.
Atlanta Fed forecasts US GDP to contract by 2.8% quarter-on-quarter in Q1 2025, compared to 2.3% growth expected two weeks ago
