A week of sharp movements in U.S. Treasury yields reflects a broader market recalibration, as fresh economic data and Fed rhetoric temper expectations for rate cuts, casting new shadows on fixed income outlooks.

The S&P 500 Index is moving back towards its all-time high and recorded its third consecutive week of gains. The other major indexes also advanced, with value stocks generally outperforming growth shares. Market volumes were especially low over much of the week. A surprise rise in weekly jobless claims seemed to dominate the week’s economic calendar: unemployment benefits rose to 231,000 in the week ended the previous Wednesday, its highest since last August. Likewise, continuing claims broke a four-week downward streak and rose to 1.79 million.

The Bank of England (BoE) is set to release its crucial monetary policy decisions this Thursday, a pivotal event with implications that could reverberate across global markets.

April's US economic landscape marked by macro challenges April saw a challenging macroeconomic environment in the US, with the market delaying interest rate cuts once again, equities experiencing their first decline since October 2023, and the earnings season beginning on an uneven note. Each month, the Syz investment team takes you through the last month in ten charts.

An update on latest developments in the US economy

Is it time for QT tapering? US equities continue to outperform 30-year US Treasuries and where are all the US listed companies going? Each week, the Syz investment team takes you through the last seven days in seven charts.

The latest FOMC meeting delivered a mixed message that caught markets off guard. Chair Powell acknowledged enduring inflation challenges while outlining a dovish path forward with an anticipated shift towards monetary normalization by year-end coupled with a reduction in quantitative tightening starting June 1st. This dual approach prompts questions about the Fed's strategy to remain restrictive yet assist the Treasury with an unprecedented supply surge (#monetization).

After a volatile week, the main US equity indices ended in positive territory thanks to a strong rally on Friday after a softer-than-expected April jobs report boosted hopes that the Fed could start cutting interest rates soon. Overall, US data have been surprising on the downside recently and markets are now pricing in two full Fed rate cuts in 2024 and three more cuts in 2025. Over the week, growth stocks outperformed value shares and small-caps outpaced large-caps. It was the 2nd-busiest week of Q1 earnings reports and a positive reception to Apple’s earnings release after the close of trading on Thursday seemed to help drive a rebound in overall sentiment.

Annual US debt interest spending is surging sharply, while Japan faces increasing inflation expectations alongside a persistent decline in the yen's value. Each week, the Syz investment team takes you through the last seven days in seven charts.

This week, all eyes are on the Federal Reserve as it unveils its latest monetary policy decisions, faced with the complex challenge of addressing an uptick in inflation amidst signs of an economic slowdown. This comes in the wake of a significant shortfall in 1Q US GDP, further complicating the Fed's policy trajectory as it navigates between sustaining growth and controlling price levels.