Weekly Market Commentary

Trade Dialogue
While there is currently a 90-day pause on the implementation of some tariffs, the impact and timing of trade negotiations with multiple countries presents a risk that is causing some investors to be tentative in buying equities. Last week, the S&P 500 Index was -1.5%, the Dow Jones Industrials -2.7%, and the NASDAQ -2.3%. The S&P 500 Index was led by the Real Estate, Energy, and Consumer Staples, while the Technology, Consumer Discretionary, and Communication

Pause
A 90-day pause in the U.S. tariff implementation plan provided equities a large relief rally last week. For the week, the S&P 500 Index was +5.7%, the Dow Jones Industrials +5.0%, and the NASDAQ +7.4%. The S&P 500 Index was led by the Technology, Industrial, and Communication Services sectors, while the Energy, Real Estate and Health Care sectors lagged. The 10-year U.S. Treasury note yield increased to 4.468% at Friday’s close versus 4.013% the previous

Behavioral Finance
Equity markets saw their worst week since the pandemic on fear over escalation of a global trade war. For the week, the S&P 500 Index was -9.1%, the Dow Jones Industrials -7.8%, and the NASDAQ -9.7%. All eleven sectors in the S&P 500 Index had a negative return. The least negative were the Consumer Staples, Utility, and Real Estate sectors, while the largest declines were in the Energy, Technology, and Financial sectors. The 10-year U.S.

Tariff Overhang
Fear trumped greed to lead equity markets lower last week, mainly from concern over the economic impact of pending tariffs. For the week, the S&P 500 Index was -1.5%, the Dow Jones Industrials -1.0%, and the NASDAQ -2.4%. The S&P 500 Index was led by the Consumer Staples, Energy, and Real Estate sectors, while the Information Technology, Communication Services, and Industrial sectors lagged. The 10-year U.S. Treasury note yield increased to 4.259% at Friday’s close

Policy Path
The S&P 500 Index finished the week higher to break its four-week losing streak. For the week, the S&P 500 Index was +0.5%, the Dow Jones Industrials +1.2%, and the NASDAQ +0.3%. The S&P 500 Index was led by the Energy, Financial, and Health Care sectors, while the Materials, Utility, and Consumer Staples sectors lagged. The 10-year U.S. Treasury note yield decreased to 4.250% at Friday’s close versus 4.316% the previous week. The Federal Reserve

Relief Rally
The equity market saw a welcome relief rally on Friday but closed lower for the week. For the week, the S&P 500 Index was -2.2%, the Dow Jones Industrials -3.0%, and the NASDAQ -2.4%. The S&P 500 Index was led by the Energy, Utility, and Financial sectors, while the Consumer Staples, Consumer Discretionary, and Communication Services sectors lagged. The 10-year U.S. Treasury note yield increased to 4.316% at Friday’s close versus 4.315% the previous week.