US Equity Markets tried to stabilize last week following recent declines, as investors eased back into the market at more attractive prices. The S&P 500 rose 0.5% for the week to bring is losses for the year to down 3.6%. The Nasdaq was up 0.2% for the week and is now down 7.9% for the year, while the Russell 2000 (small cap stocks) increased 0.6% for the week to bring its losses for the year to down 7.8%.
Global Equity Markets continued to rally last week, as Germany announced a stimulus package including significant increases to defense spending. Developed Markets were up 0.9% for the week to bring their gains for the year to 8.9%. Emerging Markets rose 1.1% for the week and are now up 5.2% for the year.
US Interest Rates fell slightly following the Fed meeting last week. The Fed largely reiterated its prior stance with expectations for two rate cuts in 2025. The yield on the US 10-Year Treasury dropped to 4.25% vs. 4.31% the prior week. Investors still believe the Fed will cut rates three times in 2025.
Of Interest to Us
Potential Impact of Pending Tariffs estimated at 0.75%. According to Strategas Group, if all tariffs that are set to be released on April 2nd do indeed go into effect, the estimated economic impact is roughly $233 billion, which equates to about 0.75% of economic activity. The biggest industry impacts would likely be on Pharmaceuticals (~$53 billion) and Autos (~$30 billion). The biggest country impacts would be on China (~$32 billion) and Mexico (~$31 billion).
Market Data
for the week ending 3/21/2025
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