Weekly Economic Pulse: For the Week of May 13, 2025
IN THIS WEEK’S RECAP: TRADE DEAL, FED UNCERTAINTY, LOWER ENERGY PRICES
WEEKLY ECONOMIC UPDATE
Presented by The PensionmarkMeridien Team, May 13, 2025
MARKET RECAP
Last week brought trade framework progress between the U.S. and the U.K. and a Federal Reserve that seemed a bit uncertain during its policy meeting.
WEEKLY STOCK INDEX PERFORMANCE
For the week ending May 9th, major U.S. stock market indexes were marginally lower, with smaller trading ranges and lower volatility than we have seen in recent weeks. The S&P 500 decreased by 0.47%.1, the Dow Jones Industrial Average decreased by 0.16%.2 and the NASDAQ 100 finished the week lower by 0.20%3.
U.S-U.K.TRADE DEAL
While last week started sluggishly for stocks on Monday and Tuesday, news broke on Wednesday of a trade deal on the horizon between the U.S. and the U.K. Markets liked the sound of that, and investor sentiment picked up heading into Thursday’s meeting in the Oval Office between President Donald Trump and Peter Mandelson, the U.K. ambassador to the U.S.
Broad outlines of the deal were unveiled at the gathering, while full agreement details were not readily available. It seems that the U.S. duties on steel from the U.K. will drop to zero from 25%.The rest of the agreement seems to set an early “baseline” on tariffs at 10%.
ENERGY DOWN, BITCOIN UP
Positive developments on trade aside, gas prices have continued to decline here at home. With crude oil hitting four-year lows last week, drivers can expect to save a bit more at the pump as we approach the peak driving season. According to AAA, the national average price for regular gasoline in the U.S. was $3.1354 per gallon as of May 11, 2025. This is a noticeable drop from the $3.6254 average seen one year ago, offering some financial relief just in time for the Memorial Day holiday.
Meanwhile, cryptocurrency markets reacted positively to last week’s trade agreement, with Bitcoin — the largest cryptocurrency by market cap — climbing to over $100,000 per coin. This brings it closer to its all-time high of nearly $109,0005, last reached in January of this year.
-QUOTE OF THE WEEK-
“Don’t be intimidated by what you don’t know. That can be your greatest strength and ensure that you do things differently from everyone else.”
— Sara Blakely
UNCERTAIN FED?
As anticipated, the Federal Reserve held its key overnight lending rate unchanged6 at 4.25%–4.50% during its May meeting last week. However, the tone was anything but confident. Mixed economic signals — with some indicators showing strength and others suggesting weakness — have contributed to uncertainty. The Fed made it clear that no preemptive rate cuts will be made in response to tariff-related concerns. Federal Reserve Chair Jerome Powell emphasized a “wait and see” approach and provided additional commentary on the current state of the economy.
THE WEEK AHEAD = CPI AND MORE
After a relatively quiet week in the markets with narrow stock index trading ranges and little economic data, the coming week brings a more active schedule. On Tuesday, the Consumer Price Index (CPI) data will be released, providing a key update on inflation. Thursday follows with a trio of important updates: Producer Price Index (PPI) data, retail sales figures, and a scheduled speech from Chair Powell. To cap off the week, consumer sentiment data will be released on Friday, giving further insight into how Americans are feeling about the economy.
That’s it for this week’s update! If you’d like to delve into these topics further or have any other questions or needs as the week unfolds, don’t hesitate to reach out. I am always here as a resource for you.
STAY AHEAD
We’re here to help you navigate what’s ahead. If you have any questions or would like to discuss how this week’s insights might apply to your situation, please don’t hesitate to reach out. And if you know someone who would benefit from this newsletter, We’d be happy to connect with them. With their permission, we’ll ensure they receive future editions.
Advisory services offered by Pensionmark Financial Group, LLC. Securities offered by Pensionmark Securities, LLC, member FINRA/SIPC. Pensionmark Financial Group, LLC is affiliated through common ownership with Pensionmark Securities, LLC. Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Citations:
1. Trading View, May 11, 2025
2. Trading View, May 11, 2025
3. Trading View, May 11 2025
4. AAA Fuel Prices, 2025
5. Investopedia, January 23, 2025
6. CNBC, May 7, 2025