The Dividend Cafe Tuesday - May 13, 2025
May 13, 2025
The S&P 500 and Nasdaq showed strong gains, signaling a market recovery, while the Dow faced a setback due to a major healthcare stock drop. Recent inflation data surprised, with rates cooling down, enhancing overall economic optimism. Small business sentiment remains below average, yet recession fears are easing. Investment risks and opportunities are discussed, reminding listeners that personalized advice is crucial in navigating the unpredictable market landscape. Patience is emphasized as positive trends unfold.
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Market Recovery Hinges on Trade
- The stock market shows positive recovery signs, with the S&P 500 now only 4% below its February highs.\n- This rebound is largely driven by reduced U.S.-China trade tariffs and ongoing trade negotiations.
Inflation Eases in April
- April inflation cooled, with both Core and Headline CPI rising just 0.2%, below expectations.\n- Annual core inflation dropped to 2.8%, its lowest since February 2021, signaling inflation is easing.
Shelter Costs Drive Inflation Down
- The shelter cost component continues to decline significantly, with owner's equivalent rent now at 0.3%.\n- This decline substantially contributes to the easing of overall inflation readings.