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. In the rest of the world, the pan-European STOXX Europe 600 Index ended about 1.4% lower as Trump announced a fresh round of U.S. trade tariffs. Japan’s stock markets fell over the week, with the Nikkei 225 Index registering a loss of 1.48%. Mainland Chinese stock markets ended the week little changed amid a light economic calendar and corporate earnings that generally met expectations. Gold topped $3080 on Friday, a new record high. It surged over 16% in Q1, its best start to a year since 1986. Silver prices soared, back above $34. Copper jumped to a new all-time high. Oil slips on recession fears but posts 3rd weekly gain. Bitcoin was volatile and ended the week close to $84k.
Have a great week-end
Charles for the team