After a swift market rally last month, U.S. equities have taken a slight pullback this week. Late last Friday after the market closed, credit rating agency Moody’s downgraded U.S. sovereign credit by one notch over concerns of the nation’s $36 trillion debt. Other headlines that drove the market came on Thursday evening. President Trump’s tax bill passed the U.S. House of Representatives and now faces a complicated path through the Senate. In bond market news, unease about the U.S. deficit pushed up treasury yields, with the 30-year yield rising to 5% and reaching its highest level since October 2023. The 10-year treasury yield hit its highest level since February at 4.6%. The market opened down 1% today due to President Trump’s comments on the EU and Apple. President Trump recommended 50% tariffs on the European Union beginning next week and has informed Apple CEO Tim Cook that they will pay a 25% tariff if iPhones are not manufactured and built in the United States. Currently, roughly half of iPhones are made in China, and Apple has plans to move all iPhone production to India by the end of 2026, per Reuters. By the end of this year, it’s estimated that 25% or more of iPhones will be made in India. Due to overseas manufacturing, Apple currently prices a new iPhone at $1,199. Analysts have estimated an American-made iPhone could cost anywhere from $1,500 to $3,500. However, with Apple’s plan of moving manufacturing to India already in motion, moving their logistical infrastructure to the United States seems unlikely.
In more company news, among the largest companies reported this week were Home Depot, TJX Companies, Target, and Lowe’s. If you have any home remodeling plans this Summer, this will be great news for you. Home Depot announced on Tuesday that they have no plans to raise prices due to tariffs. It’s CFO, Richard McPhil, says this is due to its diversification amongst suppliers, and most importantly, having more than half of its inventory coming from the U.S. Its pledge not to raise prices stands in contrast with Walmart’s announcement last week of having to raise prices to account for steeper imports from tariffs. Home improvement giant Lowe’s announced this week that it plans to keep its prices competitive and did not announce any plans to raise prices. With economic uncertainty at a high and consumer sentiment at a low, consumers are still resilient in spending on home repair and remodeling. These costs have climbed 4% compared to last year, while sales at building materials and garden supply retailers have risen almost 1% since last March. According to Harvard University’s Joint Center for Housing Studies, it projects a 2.5% increase in spending on home renovations in 2025.
In economic news, the Labor Department on Thursday reported that initial jobless claims fell by 2,000 to 227,000. U.S. new home sales rose 11%, marking the highest level of growth since February 2022. This comes at a time when economists polled by the WSJ expected a decline in new-home sales. This growth in new home sales is more impressive amidst a season of increasing mortgage rates. In news that may benefit the younger generations, Zillow has recently announced that it projects U.S. home prices to fall 1% between now and April 2026. If this comes to fruition, it will be the first time since 2011 that home prices would have declined in the calendar year. As of the end of the first quarter of 2025, the average home sale price is $503,800, while the median home sales price is $416,900.
In closing, the long-awaited list of the most popular 2024 U.S. baby names is finally here. Last week, the Social Security Administration released the most popular baby names of 2024, and for those familiar with the trends, you will not be surprised. In a stunning feat and for the sixth year in a row, Liam and Olivia retain the title of the most popular baby names. For runner-up, Noah took second place for the boys, and Emma took second place for the girls, both for the sixth straight year. Other boys’ names in the top 10 were Oliver, Theodore, James, Henry, Mateo, Elijah, Lucas, and William. Other girls’ names to make the top 10 list were Amelia, Charlotte, Mia, Sophia, Isabella, Evelyn, Ava, and Sofia. Among the names that climbed the most spots for girls was Ailany. For boys, Truce rose the highest number of spots, cracking the top 100. James and William are particularly unique in that they’re the only names on the top 10 list in 1970, showing that they don’t go out of style. There were no names for girls who were also on the 1970 list. For now, Liam and Olivia remain the most popular U.S. baby names.
Ryan Motsinger
