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.

U.S. economic data leaned constructive overall, with upward revisions to Q1 GDP, steady gains in personal income and spending, firm PMI readings, and improving consumer sentiment. Offsetting this strength, durable goods orders and new home sales softened, suggesting pockets of cooling in interest-rate-sensitive areas.

Markets navigated a holiday-shortened week with a mix of geopolitical developments, central bank decisions, and uneven economic data.

Global markets navigated a volatile week as geopolitical tensions, resilient economic data, and shifting central bank expectations drove cross-asset performance.

Last week offered a reminder that strong economic data can be a double-edged sword for markets. Recent releases pointed to resilience across the U.S. economy, including improved ISM manufacturing and services data alongside a solid May jobs report (172k payroll growth, unemployment steady at 4.3%).