A rally on Friday couldn’t spare US stocks from weekly losses. The Dow fell roughly 3.1% for its worst week since March 2023. The S&P 500 and the Nasdaq both dropped more than 2% and posted their fourth consecutive losing week. Ongoing uncertainty surrounding trade policy seemed to drive much of the negative sentiment as new tariff announcements continued throughout the week. Growth concerns and increasing recession fears—which were amplified by comments from President Trump regarding a “period of transition” for the U.S. economy—also weighed on sentiment during the week. Wednesday’s release of the CPI indicated that consumer prices rose 0.2% MoM in February, while core CPI (less food and energy) saw its lowest YoY increase since April 2021, rising 3.1% over the prior 12 months. Meanwhile, the University of Michigan reported its Index of Consumer Sentiment for March on Friday morning, which declined 11% MoM to 57.9. U.S. Treasuries generated positive returns heading into Friday as yields decreased across most maturities. Investment-grade bond spreads widened through Thursday. The pan-European STOXX Europe 600 Index ended 1.23% lower amid worries about how U.S. trade tariffs would affect economic growth and uncertainty over monetary policy. Mainland Chinese stock markets rose on stimulus hopes after Beijing said it would hold a press conference on Monday with policymakers focusing on boosting consumption. Gold topped $3,000 for the first time ever...
Have a great week-end
Charles for the team