Meanwhile, the Fed stays put at 4.25–4.5%, still pencilling in two rate cuts by year-end. Each week, the Syz investment team takes you through the last seven days in seven charts.

U.S. stock indexes finished the holiday-shortened week narrowly mixed, fluctuating throughout the week amid a slew of headlines regarding escalating tensions in the Middle East. Smaller-cap indexes performed best for the week, followed by the Nasdaq Composite, which posted modest gains. On Wednesday, the Federal Reserve kept the funds rate unchanged. The Fed’s Summary of Economic Projections showed that policymakers expect to make two interest rate cuts through the remainder of the year, unchanged from their previous projection; however, expectations for inflation and unemployment by the end of 2025 both rose, while projections for GDP growth declined. On Friday, Fed Governor Christopher Waller made comments suggesting the central bank could be in a position to cut rates as soon as July.

Flash note

As anticipated by both our CIO Research team and the broader market, the Federal Reserve maintained its key rate steady at 4.25-4.5%.

As weakening core inflation clashes with a sudden 13% surge in oil due to Middle East tensions, central banks find themselves at a difficult crossroads—caught between easing hopes and renewed inflation pressure.

Meanwhile, we look into the proposed budget proposal of President Trump and a nuclear tech company with soaring stocks. Each week, the Syz investment team takes you through the last seven days in seven charts.

U.S. stocks declined during the week with the Dow Jones Industrial Average shedding 1.32% and dropping back into negative territory for the year. The S&P 500 Index and Nasdaq Composite fell to a lesser extent and remained positive year-to-date. Major indexes were broadly higher through Thursday, buoyed by some better-than-expected economic data releases as well as reports that trade talks between the U.S. and China had led to a preliminary agreement to ease recent trade tensions. However, sentiment quickly turned negative on Friday morning on news that Israel had launched a series of airstrikes targeting Iran’s nuclear facilities and military leaders, with a pledge of more attacks to come, to which Iran reportedly responded with a retaliatory attack later on Friday.

Flash note

Robust U.S. job data drove global bond yields higher and curtailed market hopes for near-term rate cuts, yet credit spreads tightened as investors embraced risk, enabling most fixed income sectors to notch gains despite central banks’ cautious stance.

Plus, gold leaves its commodity counterparts behind as President Trump and Elon Musk feud. Each week, the Syz investment team takes you through the last seven days in seven charts.