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CIBC Private Wealth

May 30, 2025

Money Wellness Education Financial literacy Economy Commentary News Weekly update
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Morning Market Brief

The US Department of Labor reported that initial jobless claims rose more than expected over the week ended May 24, showing US labour market conditions might be slowing. Trade tensions and slowing global economic activity are expected to weigh on economic conditions in the US, including the labour market. A separate report showed the US economy contracted in the first quarter of 2025. Here’s more from a busy day of US economic announcements.

  • Initial jobless claims in the US rose to 240,000 over the week ended May 24. This marked the highest number of initial jobless claims in over a month and exceeded economists’ expectations of 230,000, based on a Bloomberg survey.
  • A second estimate revised the US economy’s contraction in the first quarter of 2025 to 0.2% from 0.3%. The contraction was driven by a significant rise in imports, which was driven by purchasers frontloading orders ahead of tariffs.
  • Tariffs have weighed on economic conditions. However, they’re now in question. A US court has deemed new tariffs against several countries illegal. The US administration appealed the decision, and the appeals court temporarily blocked the original ruling. Still, the appeals court could ultimately decide to back the original ruling and block tariffs.
  • In the US real estate market, pending home sales fell by 6.3% in April. This was the largest monthly decline since April 2024 as purchasers face high prices and elevated mortgage rates amid uncertain economic conditions.

The US economy hasn’t been immune to the negative impact of trade tensions. The US court’s decision is welcome news for global investors. However, the decision will be appealed, so the timing of the removal of the new tariffs is unknown. Canada could be one of the countries affected by the removal of the new tariffs, which would be welcome news for Canadian businesses and households. Tariffs have had a negative impact on Canada’s economy.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.

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CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc.


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