Growth is slowing, inflation isn’t
Financial Update: Week of February 23, 2025 Last week’s macroeconomic message was mixed: solid growth but sticky inflation keeps the Federal Reserve in “higher for longer” mode, dashing hopes for rate cuts. Beneath calm index moves, money rotated aggressively between sectors as investors recalibrated who benefits from this environment and who’s exposed. AI disruption has spread well…
Soft landing holds, AI disruption accelerates
Financial Update: Week of February 16, 2025 U.S. markets digested a Goldilocks scenario last week: strong jobs data paired with cooling inflation. This reinforced the soft-landing premise, leaving the Federal Reserve with little reason to rush rate cuts. Investors are recalibrating expectations for 2026 rate cuts, assessing how long rates might stay at current levels.…
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Dow hits 50,000 amid tech selloff
Financial Update: Week of February 9, 2025 I hope this message finds you well. Last week delivered whipsaw action: U.S. stocks suffered a sharp tech-led selloff midweek before roaring back to push the Dow above 50,000 for the first time. The S&P 500 narrowly avoided its worst weekly drop since October as investors grappled with rising rate…
February update: A market in transition
Financial Update: Week of February 2, 2025 Last month, the U.S. economy continued its above-trend expansion, driven primarily by robust consumer spending and a resilient services sector. Housing showed renewed momentum as lower mortgage rates brought buyers back to the market. Yet beneath these positives, challenges are mounting. Manufacturing activity has now contracted for ten consecutive months while inflation remains elevated…
Markets steady despite tariff fears
Financial Update: Week of January 26, 2025 Last week, U.S. markets whipsawed through the shortened week as tariff threats and business surveys shifted expectations for growth and Federal Reserve policy. Stocks tumbled on Europe and Greenland tariff fears before recovering quickly, while fresh data confirmed consumer strength and easing prices, supporting a gradual slowdown without recession and…
Records, retail strength, and Fed friction
Financial Update: Week of January 19, 2025 U.S. markets showed mixed performance last week, with the S&P 500 posting a losing week despite hitting new records mid-week. Volatility stemmed from President Trump’s Federal Reserve comments, cautious guidance from major banks, and mixed economic signals, though inflation readings, strong retail spending, and resilient growth indicators bolstered the soft-landing narrative. Here…
First full trading week of 2026 ends on positive note
Financial Update: Week of January 12, 2025 U.S. financial markets ended the first full trading week of 2026 on a broadly positive note, with major equity benchmarks reaching all-time highs. Robust investor participation defied typical early-year caution. The overarching narrative was renewed confidence in a soft-landing scenario rather than a flight to safety, as evidenced…
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Fed cuts, inflation cools, and markets split
Financial Update: Week of January 5, 2025 December served as a fitting finale to a year that defied expectations, anchored by a classic late-cycle mix: moderating price pressures, a supportive Federal Reserve, and resilient equity markets. This backdrop allowed investors to traverse another rate cut without shaking the prevailing ‘soft-landing’ consensus for 2026. Leadership shifted…
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Record highs and consumer jitters
Financial Update: Week of December 29, 2025 I hope you’re doing well as the year comes to an end. Despite scaled-back trading, markets are closing out 2025 on an upbeat note. The S&P 500 and Dow notched record highs last week, propelled by stronger-than-expected economic data and easing price pressures. Meanwhile, a rally in gold…