Markets moved higher this week while continuing to work through a longer-term consolidation phase that has defined much of the year so far. For the week, the Dow Jones Industrial Average gained 0.3%, the S&P 500 rose 1.1%, and the Nasdaq advanced 1.5%. Year to date, the Dow leads at +3.3%, the S&P 500 is up 0.9%, and the Nasdaq remains down 1.5%.
From a technical perspective, the S&P 500 continues to trade within the consolidation range discussed on recent programs. Resistance near 7,000 remains intact, while the 50-day moving average has acted as a recurring support level. By week’s end, the index moved back above that average, reinforcing the pattern of sideways movement rather than sustained decline. The Money Wise guys emphasize that this type of consolidation following strong prior gains is typical in market cycles, allowing valuations to normalize and confidence to rebuild. Technology stocks, which drove much of the prior advance, are also becoming more attractively valued after multiple compressions, creating selective opportunities within the sector.
Market Resilience During Policy Shifts
A major development during the week was the Supreme Court ruling on tariffs tied to the April 2025 trade actions. The Court struck down the specific legal provision previously used, but markets absorbed the news calmly as the administration moved quickly to implement tariffs through other existing authorities. The guys note that the muted market response reflected investors’ understanding that trade policy direction remains largely unchanged despite the legal shift.
In the second hour, the Money Wise guys explore RIA vs. Broker. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.
