Archives May 2025

Shares of casino operators Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) surged to outpace the broader market Monday on news the U.S. and China agreed to slash tariffs for 90 days.

The stocks are heavily exposed to the Chinese economy given their casino operations in the special administrative region (SAR) of Macau, or Macao. Both Wynn Resorts and Las Vegas Sands generated 47% of their first-quarter adjusted property EBITDA in Macau. Meanwhile, MGM Resorts International’s MGM China unit produced 45% of its Q1 adjusted EBITDA.

In its first-quarter report last month, Las Vegas Sands said its Macau market growth had “softened in the current environment,” but added it was well-positioned for future growth given its “decades-long commitment to making investments that enhance the business and leisure tourism appeal” there.

Shares of Wynn Resorts, Las Vegas Sands, and MGM Resorts International were up roughly 8%, 7%, and 5%, respectively, in recent trading on a day when the benchmark S&P 500 was advancing 3%. For the year, Wynn shares are up about 10%, while those of Las Vegas Sands and MGM Resorts are down 17% and 1%, respectively.

Follow Investopedia’s coverage of today’s live markets news here.

The states with the cheapest 30-year mortgage refinance rates Friday were New York, California, Florida, Georgia, Texas, Connecticut, and Tennessee. These seven low-rate states registered averages between 6.88% and 7.10%.

Meanwhile, the states with the most expensive Friday refinance rates were West Virginia, Alaska, Washington, D.C., Missouri, Utah, and Wyoming. The range of 30-year refi averages for these high-rate states was 7.21% to 7.30%.

Mortgage refinance rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

Since rates vary widely across lenders, it’s always smart to shop around for your best mortgage option and compare rates regularly, no matter the type of home loan you seek.

National Mortgage Refinance Rate Averages

After a two-day drop, rates for 30-year refinance mortgages have now jumped higher for two days. Adding 7 basis points Friday, the national 30-year refi average is up to 7.15%. Still, that’s an improvement vs. mid-April, when rates surged 40 basis points in a week to notch a 7.31% peak—the highest level since July 2024.

But in March, 30-year refinance rates sank to a 6.71% average, their cheapest level of 2025. And back in September, rates plunged to a two-year low of 6.01%.

National Averages of Lenders’ Best Mortgage Rates
Loan Type	Refinance Rate Average
30-Year Fixed	7.15%
FHA 30-Year Fixed	7.58%
15-Year Fixed	5.98%
Jumbo 30-Year Fixed	7.10%
5/6 ARM	7.24%
Provided via the Zillow Mortgage API

Beware of Teaser Rates

The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate you ultimately secure will be based on factors like your credit score, income, and more, so it can vary from the averages you see here.

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• Competition between mortgage lenders and across loan types

Because any number of these can cause fluctuations simultaneously, it’s generally difficult to attribute any change to any one factor.

Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.

But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable monthly reductions until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed’s 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions on November and December.

For its third meeting of the new year, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. With a total of eight rate-setting meetings scheduled per year, that means we could see multiple rate-hold announcements in 2025.

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.

Loan Type	New Purchase Rates	Daily Change
30-Year Fixed	6.98%	+0.03
FHA 30-Year Fixed	7.37%	No Change
VA 30-Year Fixed	6.60%	+0.04
20-Year Fixed	6.74%	+0.04
15-Year Fixed	6.03%	+0.02
FHA 15-Year Fixed	6.78%	No Change
10-Year Fixed	5.76%	-0.14
7/6 ARM	7.34%	-0.02
5/6 ARM	7.31%	+0.04
Jumbo 30-Year Fixed	6.96%	+0.04
Jumbo 15-Year Fixed	6.87%	+0.05
Jumbo 7/6 ARM	7.42%	No Change
Jumbo 5/6 ARM	7.50%	-0.03
Provided via the Zillow Mortgage API

The Weekly Freddie Mac Average

Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. Last week’s reading was flat at 6.76%, after dipping from 6.83% over the previous two weeks. Last September, the average sank as far as 6.08%. But back in October 2023, Freddie Mac’s average saw a historic rise, surging to a 23-year peak of 7.79%.

Freddie Mac’s average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac’s methodology and our own.

Calculate monthly payments for different loan scenarios with our Mortgage Calculator.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:

• The level and direction of the bond market, especially 10-year Treasury yields
• The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
• Competition between mortgage lenders and across loan types

Because any number of these can cause fluctuations simultaneously, it’s generally difficult to attribute the change to any one factor.

Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.

But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.

Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.

But given the historic speed and magnitude of the Fed’s 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December.

For its third meeting of 2025, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. At their March 19 meeting, the Fed released its quarterly rate forecast, which showed that, at that time, the central bankers’ median expectation for the rest of the year was just two quarter-point rate cuts. With five more rate-setting meetings scheduled this year, that means we could see more rate-hold announcements in 2025.

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 135 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

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Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/05/weekly-stock-grader-analysis-upgrades-downgrades-on-top-blue-chip-stocks/.

©2025 InvestorPlace Media, LLC

San Diego, Calif., has a well-deserved reputation as one of the most desirable retirement destinations in the United States. Unfortunately, it is also among the country’s most expensive places to retire, according to new research from Travel + Leisure and Investopedia.

We examined property prices, state and local taxes, and the overall cost of living—as well as the many factors that make San Diego appealing despite the big price tag.

Understanding the Costs of Retiring in San Diego

Overall Cost of Living

San Diego isn’t cheap. The website Payscale pegs the cost of living there as 44% higher than the national average. Breaking that down, the site found that housing costs were 115% higher, transportation costs 35% higher, utilities costs 20% higher, and grocery costs 14% higher.

According to the Economic Policy Institute’s Family Budget Calculator (which takes into account housing, food, transportation, health care, taxes, and other necessities), a household with two adults and no children living in San Diego County would spend $86,243 a year, on average.

That’s high even for a retirement haven. The comparable figure for Beaufort County, S.C., home to Hilton Head Island, is $74,229. For Maricopa County, Ariz., which includes Phoenix and Scottsdale, it’s $68,525.

Property Prices

The high cost of retiring to San Diego County starts with the price of admission: home prices. According to Census Bureau data, the median home price in San Diego was recently $791,600.

That compares with the national median home price of $403,700, as of May 2025, according to the National Association of Realtors.

A search of Realtor.com showed many homes in the $1 million-plus category, quite a few with $2 million and $3 million asking prices. Coastal properties are particularly desirable and, given that there is only so much coastline, are often in limited supply.

In other words, property prices alone can put the area out of reach for many retirees. 

Even for retirees who can scrape up the cash, devoting too large a portion of their budget to housing can mean forgoing other pleasures, such as travel or dining out. In fact, housing accounts for nearly 38% of San Diegans’ annual spending, compared with a national average of just over 33%.

Local Taxes

California is known as a high-tax state, and San Diego is no exception. While not specific to retirees, the Economic Policy Institute’s Family Budget Calculator estimates that a household with two adults and no children in San Diego County can expect to pay an average of $1,055 a month in taxes. Those taxes take a variety of forms.

Sales taxes: California has the highest state sales tax in the U.S., at 7.25%, according to the Tax Foundation. San Diego County adds another 0.5% to that, for a combined total of 7.75%.

Counterbalancing that somewhat, California exempts many of the items that are likely to be on retirees’ shopping lists, including prescription drugs and most food products, except for heated prepared foods.

Income taxes: California has a progressive income tax, with marginal tax rates ranging from 1% to 12.3%. A married couple whose income was between $80,490 and $111,732, for example, would pay a top rate of 6%.

Property taxes: California actually has relatively low property tax rates, due in part to the restrictions imposed by the passage of Proposition 13 in 1978. According to the Tax Foundation, residents pay an average effective rate of 0.68%. However, because of the high local housing values, that can still add up. In 2022, San Diegans paid median property taxes of $5,214.

Estate taxes: Also on the plus side, California doesn’t have either an estate tax or an inheritance tax, which can be a concern for wealthier retirees.

Health Care Costs

San Diego has abundant and high-quality health care. For example, the Medicare.gov website lists 18 hospitals within a 25-mile radius, many with coveted four- or five-star quality ratings.

Health care costs in San Diego tend to be no higher and, in some cases, lower than those in many other parts of the country. While its figures don’t focus specifically on retirees, the U.S. Bureau of Labor Statistics found that in 2022-2023, San Diegans had average health care expenses of $5,514 a year, compared with a national average of $6,042. In Denver, for example, the comparable figure was $7,118, and in Phoenix, $7,550.

What Makes San Diego So Expensive?

Desirable Coastal Location

The southernmost major city on California’s Pacific coast, San Diego offers agreeable weather year-round. The county’s 70 miles of coastline are dotted with an array of public beaches for swimming, surfing, and basic lounging.

For retirees on the go, San Diego also has an international airport and two downtown cruise ship terminals serving 10 major cruise lines. The Mexican border city of Tijuana is about 30 minutes away by car.

Strong Local Economy

San Diego has a solid, well-diversified economy with major sectors including aerospace, defense, life sciences, manufacturing, and tourism. The county is also home to two dozen universities, colleges, and community colleges.

Those employers draw a well-educated workforce, with salaries to match. The average household income in San Diego was $122,832 in 2022-2023, according to the Bureau of Labor Statistics, compared with the national average of $97,911. That accounts, in part, for higher local prices.          

Limited Housing Supply

The housing market in San Diego ranks as “very competitive,” according to the real estate website Redfin. That demand is driven by regular full-time residents and second-home owners, including retirees.

Another factor is local zoning policies. While not uncommon in California or much of the U.S., San Diego’s zoning policies heavily favor single-family homes over multi-family units. A 2022 report from the Othering & Belonging Institute at the University of California, Berkeley, concluded that, “the San Diego region’s residential areas are dominated by single-family-only zoning, stifling the development of denser housing options, perpetuating racial and economic exclusion, and shaping access to opportunity for millions of Californians.”

Retirement Considerations in San Diego

So, to sum up some of the major pros and cons of retiring to San Diego:

Pros: Beautiful Climate and Top-Tier Services

San Diego’s climate is likely a significant attraction for retirees who like to get out and about. As the National Weather Service explains, “The prevailing winds and weather are tempered by the Pacific Ocean, with the result that summers are cool and winters warm in comparison with other places along the same general latitude.” That means active retirees can enjoy the area’s many beaches, parks, and other outdoor attractions for much of the year.

San Diego also has many highly rated hospitals and health care facilities, as well as being well-situated for retirees who like to jump on a plane or cruise ship when the mood hits. Public transportation is limited, so residents are likely to want a car, but downtown San Diego and its coastal neighborhoods are pedestrian-friendly. 

Cons: High Housing and Everyday Costs

The major downside to a San Diego retirement, as we’ve indicated, is the cost of living. That’s driven primarily by housing prices, which are not only significantly higher than the national average but also higher than many comparable retirement hotspots.

Other, everyday costs, such as groceries and utilities, will also drive up the bill. So will state and local sales and income taxes. In particular, anyone whose prime sources of retirement income are likely to be pensions and IRAs, rather than Social Security, might want to look into a state that doesn’t tax them.  

The Bottom Line

San Diego’s considerable charms come at a price. Prospective retirees should consider how much of a premium they’re willing to pay for the area’s congenial weather, recreational opportunities, and top-flight health care, among other pluses. By comparing San Diego with other suitable retirement destinations, they can decide whether the high price tag is worth it. Many may decide that it is.   

Editor’s Note: On Wednesday, the Federal Open Market Committee (FOMC)
chose to keep interest rates steady. Powell and the FOMC are standing still.
They’re not in panic mode, and I believe that’s the correct position.

Furthermore, my colleague, Luke Lango, sees a summer rally
approaching – and he’s built an easy-to-use quant tool that you can use to
profit. Every month, he’ll tell you what stocks to buy and sell based on a
number of factors, including growing revenue, trending upward and gaining analysts’ attention.

The tool is called Auspex, and you can learn more about it by clicking here.

Now, I’ll let Luke explain more about the summer rally that is fast approaching…

Everyone was expecting fireworks on Wednesday afternoon…

Here’s what I said on Wednesday, before the FOMC rate decision announcement and Fed Chair Jerome Powell’s press conference, in the Daily Notes I send my paid-up members…

Powell’s press conference will provide some much-needed clarity as to what the Fed will do in June. He will either sound dovish and open the door for a rate cut – which will send stocks soaring higher. Or he will sound hawkish and sound hesitant on cutting rates – which will send stocks plunging lower.

But instead, Powell and the FOMC were… nothing but damp sparklers.

They kept their benchmark rate unchanged, at a target of 4.25% to 4.5%. That was as expected. The fireworks were supposed to come from the Fed’s statement and Powell’s press conference.

However, Powell said the same thing he’s been saying for months.

“We don’t think we need to be in a hurry,” he said with regard to the potential for cutting rates. He said that there are cases where it would be appropriate to cut… or to stand pat.

The stock market’s response was damp as well. All three major indices ended the day less than a percentage point up from where they started.

No “soaring” or “plunging.”

And while that may be ho-hum news for set-it-and-forget-it index investors, it’s great news for self-directed investors.

So, let’s do a few things today…

Let’s review how we got here… and why I think we’re headed into a summer rally.

Plus, I’ll tell you why this will remain a stock picker’s market despite that rally.

Also, let’s take a peek at the quant tool my team and I built to help us find the best stocks in the market. It works in volatile times like these… and it will work even better once we get past them.

Plus, I’ll reveal one stock my tool and I picked that was a winner for us last month… and that we picked again this month.

This underappreciated “space economy” play is already blasting off and outperforming the market this month as well…

The Building Summer Rally

Stocks just endured one of the fastest and most violent crashes in modern history.

In early April, stocks plummeted 10% in just two days.

As a matter of fact, until last week, stocks were tracking for their third-worst year on record after dropping more than 12% in the first 74 trading days…

But then came the biggest comeback rally in the past 100 years.

Signs that the global trade war is rapidly deescalating blew strong winds into Wall Street’s sails – sparking a historic rally. And, just as fast as they crashed, stocks staged an epic rebound.

And, I believe, momentum is building.

Let’s start with May, when we expect the “trade dam” to break.

The pressure that’s been building since “Liberation Day” is finally forcing a breakthrough on the trade front. 

Over the past week, multiple White House officials have suggested that several trade deals are nearly complete – especially with key allies. We just heard about one with the United Kingdom Thursday morning, in fact (that lit off some fireworks).

We expect more of those deals to be announced in May.

They’ll do more than just ease tariffs. They’ll slam the brakes on inflation fears, cool the geopolitical heat, and give the Fed the economic clarity it’s been waiting for.

Then we’ll move into June, where two catalysts will converge – and ignite a major market rally.

First, we expect a terrible May jobs report. That’s good news. 

Weak jobs data will show the true employment cost of the “Liberation Day” tariff blitz, which began just after the last payrolls survey.

This will give the Fed every reason it needs to pull the trigger on its first rate cut of 2025 at the June FOMC meeting… or at least provide the sort of post-meeting fireworks we were looking for on Wednesday.

But that’s not all.

As trade deals are signed, pressure will mount on the U.S. and China to come to terms. We believe the nations will announce a framework deal, which would serve as the clearest sign yet that the trade war is winding down.

Then in July, we will get the final piece of the puzzle: tax cuts. 

We expect Congress to finalize a massive tax reform bill extending – and potentially expanding –the 2017 tax cuts. By then, lawmakers will have the cover to push this bill through.

These positive catalysts will lead us into the 2Q earnings season, which kicks off in mid-July. Those reports should reflect easing cost pressures, improved demand visibility, and a surge in forward confidence. As such, we expect strong earnings, better guidance, and reaccelerating growth.

But make no mistake…

The Stock Picker’s Stock Picker’s Top May Pick

This isn’t a “buy everything and hope for the best” market.

Volatility is the new norm. We’re living in the Age of Chaos

Traditional buy-and-hold strategies don’t work like they used to.

And so, my team and I have developed what we believe is the ultimate stock-picking engine — a quantitative, machine-driven screener that helps you get in, get out, and get paid month after month in this Age of Chaos.

It scans the market for the rarest type of opportunity – stocks that are simultaneously:

• Growing earnings, revenues, and margins.
• Trending up across short- and long-term technicals.
• Getting attention from both analysts and traders.

These are the strongest stocks in the entire market at any given moment.

Then my team and I make the final call on which of those stocks we recommend to our subscribers.

And we’ve stress-tested it.

Over the past five years, it could have returned 1,054% — outpacing the S&P 500 by more than 10X. Even in rough stretches, it’s been able to sidestep crashes and capitalize on rebounds. In 2024, from July through December, while the S&P barely moved, it could have delivered a 24.3% return.

This model doesn’t require you to perform hours of research or constant monitoring. Just 30 minutes a month is enough to follow its signals.

In April, one of the most volatile months in stock market history, the S&P 500 dipped into bear market territory and then clawed its way back out to a just under 1% loss.

At the same time, one of this tool’s picks was Howmet Aerospace Inc. (HWM). In April, it took off for a 13.4% gain.

Our proprietary stock screener picked this aerospace and defense component specialist again earlier this month… and we agreed. So far in May, HWM shares are up 6.2% (and the top performer in our portfolio). Meanwhile, the S&P is up less than 2%.

We took this tool out of the “lab” and started using it live in June 2024. Since then, we’ve put it to the test in 10 monthly portfolios.

And with results like I just showed you with Howmet, it’s no surprise that this quant screener has, in six of those months, handily beat the market… and tied it once.

To show you what else this tool can do, I’ve participated in an event where I show you a lot more about how this tool works. It’s free to viewers.

Go here to watch it now.

Sincerely, 

Luke Lango

Senior Analyst, InvestorPlace

Global pharmaceutical shares are slumping Monday after President Donald Trump said he is looking to slash the price of prescription drugs in the U.S. by as much as 80%.

The president’s announcement put shares of drug companies under pressure, even as a temporary deal struck between the U.S. and China reducing tariffs lifted global stocks. Shares of Eli Lilly (LLY), Pfizer (PFE), AbbVie (ABBV), Merck (MRK), Novo Nordisk (NVO), and Novartis (NVS) all were down roughly 2% to 3% less than an hour before the opening bell.

U.S. drug prices are nearly three times higher than those overseas, according to U.S. government data. Branded drugs are more than three times higher, even with rebates included.

Trump wrote in a post on his Truth Social platform on Sunday evening that he planned to sign an executive order Monday morning to ensure the U.S. pays the same price as the lowest costs paid by any other nation. He said he expects the order will reduce the cost of pharmaceuticals by 30% to 80%.

U.S. stock futures are jumping after the U.S. and China agree on a trade deal that would temporarily lower tariffs between the two countries; Tesla (TSLA), Nvidia (NVDA), and other tech stocks are surging in premarket trading on the agreement; pharmaceutical stocks are falling after President Donald Trump wrote he plans to reduce prescription drug prices; and automaker stocks are gaining following the trade deal news. Here’s what investors need to know today.

1. US Stock Futures Surge Following US-China Trade Deal

U.S. stock futures are soaring on the news of a trade deal between the U.S. and China at the beginning of a week that will see fresh inflation data, remarks from Federal Reserve officials, and a slate of corporate earnings that includes Walmart (WMT). Dow Jones Industrial Average futures are surging 2.5%, or more than 1,000 points. Nasdaq and S&P 500 futures are up about 4% and 3%, respectively. Bitcoin (BTCUSD) is little changed at around $104,000, while yields on the 10-year Treasury note are rising above 4.45%. Oil futures are jumping and gold futures are dropping.

2. US, China Agree to Slash Tariffs for 90 Days

The U.S. and China agreed to slash tariffs on each other’s imports for 90 days following weekend talks between leaders of the two countries in Switzerland. Under the agreement, the U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing’s tariffs on U.S. goods will drop to 10% from 125%. The deal, announced in a joint statement, comes after tit-for-tat tariff hikes between the countries created volatile market movements.

3. Tesla, Other Tech Stocks Soar on Trade Deal

Tech stocks are soaring in premarket trading on the U.S.-China trade deal. Shares of Tesla (TSLA) are nearly 8% higher after the electric vehicle maker posted its third straight week of gains to trade at its highest levels in more than two months. Shares of chipmakers Advanced Micro Devices (AMD), Broadcom (AVGO), and Nvidia (NVDA) are up around 7%, 6%, and 5%, respectively. Shares of Apple (AAPL), which makes about 90% of its products in China, are up 6%, while those of Amazon (AMZN), which sells many Chinese-made goods, are advancing nearly 8%.

4. Pharmaceutical Stocks Fall on Trump Pledge to Reduce Drug Costs

Several pharmaceutical stocks are moving lower in premarket trading after President Donald Trump wrote in a Trust Social post Sunday that he would sign an executive order to reduce drug costs by 30% to 80%. Trump said in his post that the order would bring down drug costs to the lowest price paid in other countries under a “most favored nation” policy. Eli Lilly (LLY) stock is dropping by 3.5%, while U.S.-listed shares of rival Novo Nordisk (NVO) are falling 3%. Merck (MRK) and Pfizer (PFE) shares are down 3% and 2.5%, respectively.

5. Automaker Stocks Rise on China Trade Deal

Automaker stocks are moving higher following the U.S. trade deal with China after previous tariff announcements on vehicle imports had caused share prices to drop. Shares of Stellantis (STLA) are jumping 7% in premarket trading, while those of fellow “Big Three” automakers General Motors (GM) and Ford (F) are up roughly 4% and 3%. Several automakers had recently suspended or cut their outlooks after President Trump issued a 25% tariff on all auto imports.

Written by the Market Insights Team

Fundamentals in Canada remain weak

Kevin Ford – FX & Macro Strategist

USD/CAD extended last week’s rebound after briefly pausing at 1.394, fueled by renewed trade optimism as the U.S. and China agreed to slash tariffs by 115% for the next 90 days. The deal lowers U.S. tariffs on Chinese imports to 30% and China’s tariffs on U.S. goods to 10%, helping to stabilize market sentiment as negotiations continue. In addition, some export restrictions have been temporarily lifted, adding to the optimism surrounding trade discussions.

For the USD/CAD some resistance is expected as it approaches the 1.40 level, where the 200-day SMA sits. The US Dollar has gained sharply against Euro and Pound amid broad strength. Equity markets wasted no time reacting to the news. Dow Jones futures jumped 2.1%, S&P 500 futures climbed 2.8%, and Nasdaq-100 futures surged 3.8% early Monday, reflecting renewed investor confidence in easing trade tensions.

On the macro front, last week’s jobs report revealed Canada’s unemployment rate edged up to 6.9% in April, marking its highest level since November. Job growth was minimal, with only 7.4K positions added, and the manufacturing sector took the biggest hit, shedding 31K jobs, the sharpest decline since January 2009, outside of the COVID-19 crisis. This 1.6% drop marks the sector’s first major setback since November 2024, as ongoing uncertainty around U.S. tariffs continues to weigh on business confidence.

Ontario was hit the hardest, losing 33K jobs (-3.9%), with Windsor feeling the most pressure. Given that automotive industries account for 43.1% of the city’s manufacturing employment, the region saw its unemployment rate jump 1.4 percentage points to 10.7%. Meanwhile, wholesale and retail trade also showed signs of weakness, cutting 27K jobs (-0.9%).

Last week’s Bank of Canada financial stability report flagged job losses as a growing risk to the economy, especially with household debt remaining high. A weaker labor market could add financial strain for borrowers, making policymakers more cautious. As a result, the chances of another rate cut at the Bank’s next meeting are looking higher.

Dollar extends gain as busy week beckons

George Vessey – Lead FX & Macro Strategist

The US dollar index is reaching a 4-week highs this morning, extending its 3-week rally as US-China reached a deal. US stock futures are outperforming, leading gains over European and Asian shares, while traditional safe-haven currencies, the yen and Swiss franc, slipped alongside Treasuries, reflecting fading demand for defensive assets. Meanwhile, China-linked currencies surged, with Australian and New Zealand dollars climbing alongside the yuan, while the euro retreated, mirroring shifts in global sentiment.

Although the whole situation remains fluid and uncertainty is still high, much of the fallout from Trump’s “Liberation Day” tariff announcements has been erased as the President softens his protectionist stance, fueling a relief rally and suppressing volatility. However, investors remain cautious, reluctant to make big bets on optimistic rhetoric without concrete steps to reduce levies, particularly between the US and China. While the tone has shifted, uncertainty persists, keeping traders on edge until clear policy moves emerge.

The dollar, which faced selling pressure earlier this year over concerns about trade policy uncertainty, has regained ground as negotiation optimism, solid economic data, and the Fed’s cautious stance on rate cuts underpin demand. As well as keeping a close eye on trade talks, US consumer inflation data on Tuesday, followed by retail sales and producer prices on Thursday, will be under the microscope as investors look for fresh signals on how the trade war has impacted the economy and when the Fed will start cutting rates again.

Euro slides as risk appetite builds

George Vessey – Lead FX & Macro Strategist

The euro continues to face downside pressure, retreating toward a key support region ($1.12) against the US dollar as US equity futures rally. Encouraging signals from US-China trade talks over the weekend have reinforced the pattern of inverse moves between risk assets and the common currency.

Recent market dynamics have positioned the euro as a hedge against US policy uncertainty, benefiting from safe-haven flows when equities decline. However, with sentiment shifting toward optimism and risk appetite strengthening, the euro is likely to remain under pressure. Any further trade progress could accelerate the move, keeping the currency on the defensive.

The Eurozone’s recovery narrative is also being tested. This week’s ZEW survey and GDP data could prove pivotal. Any signs of weakening momentum could further weigh on the euro, particularly if US economic resilience comes back into focus. Investors will watch these releases closely, assessing whether the euro’s recent slide extends further or stabilizes near current levels.

Mexico auto industry on a downward trend

Kevin Ford – FX & Macro Strategist

After a standout 2023, Mexico’s auto industry has been on a downward slide, and the latest U.S. tariffs aren’t doing it any favors. With 70% of Mexico’s automotive production heading to the U.S., any disruption in trade hits hard.

April 2025 was no exception. According to Instituto Nacional de Estadística y Geografía (INEGI), car exports dropped 10.9% year-over-year, reversing the 3.8% uptick seen in March. The tariffs have clearly slowed shipments to the U.S., with some of the biggest names feeling the pressure.

Mazda had the toughest month, with exports plunging 60.9%. Volkswagen also struggled, down 44.4%, while Mercedes-Benz, -43.9%, Stellantis (Chrysler and Fiat), -36.9%, Audi -33.7%, and BMW -32.6% all posted sharp declines. Toyota bucked the trend, jumping 36.4%, while General Motors +8.8%, and Ford +1% also managed to stay in positive territory.

Dollar gains sharply against Euro and Pound amid broad strength

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: May 12-16

All times are in ET

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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quothave a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.