A Window of Peace in a War of Policies

After months of rising tensions, a dramatic shift unfolded last week on the world stage. Following pivotal trade talks held in Switzerland, the United States and China agreed to a 90-day tariff truce—pausing their economic brinkmanship and replacing fear with fragile hope. The U.S. slashed tariffs from a crushing 145% to 30%, while China reduced its own to 10%, easing rare-earth restrictions along the way. Markets responded with vigor!

Weekly Performance

Data Source: Factset®        Performance Period:      5/12/2025  to 5/16/2025

The momentum continued, as Washington announced a rollback of restrictions on artificial intelligence chip exports—removing barriers that had constrained U.S. tech firms. Paired with a headline-making deal between NVIDIA and Saudi Arabia, optimism returned to a sector that had been caught in the crossfire.

While uncertainty still lingers, the worst-case scenarios seem to be fading. Tariffs are trending toward a more sustainable 10–15%, a level expected to bring only modest inflation and steady, if subdued, growth. And beneath the headlines, the economy offered further reassurance: inflation cooled and jobless claims steadied.. April’s Consumer Price Index rose just 0.2%, with year-over-year gains at their lowest since 2021. Wholesale prices fell unexpectedly. Retail sales wavered, but showed underlying strength.

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Yes, sentiment remains shaken—consumer confidence remains down nearly 30% since January, bruised by fear and uncertainty. But this tariff ceasefire offers more than temporary relief. It offers a chance to reset and take a breath. As we reflect on this fragile breakthrough, we are reminded of God’s steady hand amid chaos. He makes wars cease to the ends of the earth” (Psalm 46:9). Even in trade wars and market turmoil, He remains our anchor. And through every truce and trial, He is still working all things for good.

Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights

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