WEEKLY SUMMARY: Stocks & rate-cut-hopes rebound on tariff ‘flexibility'
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U.S. stock indexes declined during the week, largely driven by weakness in IT and communication services sectors, while value stocks outperformed growth shares for the 6th consecutive week. Several new tariff announcements—including a 25% levy on all non-U.S.-made automobiles—as well as concerns around a broader economic slowdown and weakening consumer sentiment weighed on stocks. Adding to these concerns, the core PCE price index—the Fed’s preferred measure of inflation—rose 0.4% in February, up from January’s reading of 0.3%. On a year-over-year basis, the core PCE rose 2.8%, remaining well above the Fed’s long-term inflation target of 2%. The data release appeared to help drive stocks lower on Friday to finish the week near their worst levels. U.S. Treasuries were little changed as yields were volatile.