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.