Markets delivered a relatively quiet week of consolidation, with modest reversals across major asset classes. U.S. large-cap equities advanced, with the S&P 500 and Nasdaq 100 each gaining approximately 0.5%, while the Russell 2000 declined 1.5%.

Last week reinforced a central market theme: long-term interest rates remain a critical driver of asset prices. Rising Treasury yields pressured U.S. equities, particularly technology and other long-duration growth stocks.

Markets advanced globally as easing inflation pressures, resilient earnings, and continued optimism around AI-related investment outweighed concerns about elevated yields, energy volatility, and pockets of softer economic data.

Global markets advanced last week as improving geopolitical sentiment, resilient economic data, and strong corporate earnings supported risk assets despite a softer-than-expected U.S. employment report and continued uncertainty around inflation and central-bank policy.

Last week’s market action was shaped by a familiar mix of geopolitics, inflation pressure, and shifting rate expectations. Escalating tensions in the Middle East drove oil prices higher, pushing Brent back near $100/barrel and adding renewed inflation concerns across asset classes.

Last week’s market action underscored a sharp shift in investor priorities, particularly within technology. Hyperscalers faced a notable repricing as markets showed limited tolerance for continued increases in AI-related capital expenditures.

Global equity markets delivered a mixed but telling signal last week, with the S&P 500 advancing 1.26% despite rising geopolitical tensions and ongoing uncertainty around monetary policy.

Last week’s market activity reflected a familiar dynamic: resilient economic data, rising geopolitical tensions, and continued debate around inflation’s path forward.

Last week’s market narrative shifted quickly as a weaker-than-expected labor report altered the outlook for both Fed policy and equities. While the unemployment rate ticked slightly lower to 4.2%, slowing job creation and a drop in labor force participation to a five-year low point to a gradually cooling labor market.