The Dow Jones was up for a 4th week in a row as investors weighed slowing growth signals against signs that inflation pressures were receding a bit more than expected. In the US, Materials and industrials shares outperformed while Technology lagged mainly due to NVIDIA decline. Banking giants JPMorgan Chase, Wells Fargo, and Citigroup kicked off Q1 earnings season. All three topped consensus estimates and brought some relief to investors.

Mixed signals on US employment data pushed yields lower!

US employment numbers in line with consensus expectations, US bank deposits are down again for 10th consecutive week with a knock-on effect for US bank loans, which are at a record low. Each week, the Syz investment team takes you through the last seven days in seven charts.

The major US equities indices were mostly lower over a holiday-shortened week that was characterized by light and choppy trading. Several important economic releases weighed on sentiment. On Monday, the ISM gauge of March factory activity fell back to a nearly three-year low. The ISM’s services sector gauge, released two days later, indicated that the services sector was still expanding, but at a significantly slower-than-expected pace.

In the US, more than $500 billion was invested in money market funds in the first quarter

A solid month for the fixed income asset class!

US equities posted solid gains in a relatively quiet week for economic data releases and financial news. Small-caps outperformed large-caps, and value stocks advanced modestly more than growth stocks. Rising oil prices boosted energy stocks. U.S. WTI crude oil rose more than 9% for the week, climbing back above the USD 70 per barrel level. Over the quarter, the Nasdaq Composite index jumped more than 16%, while the S&P 500 Index rose approximately 7%.

Merged UBS and Credit Suisse to become world’s third biggest asset manager, the Fed’s balance sheet swells, while a systemic credit event is perceived as a very real risk by fund managers. Each week, the Syz investment team takes you through the last seven days in seven charts.

What if the Federal Reserve raised its funds rates for the last time this cycle?

US equity returns varied widely over the week as banking industry and recession worries weighed on value stocks and small-caps, while large-cap growth stocks benefited from falling interest rates. Financials underperformed for a third consecutive week while the average stock remained significantly weaker than the S&P 500 Index’s return suggests.