Stocks fell back sharply last week as concerns about the economic recovery, warnings about weakness ahead, bleak economic data and renewed US-China tensions all weighed on sentiment. Small caps and slower growing value stocks fared the worst while healthcare and consumer staples held up reasonably well. Federal Reserve Chair Powell spoke on Wednesday and stated that the economy was “subject to significant downside risks” in the months ahead and he warned of “lasting damage to the productive capacity of the economy.”  He dismissed the notion of implementing negative interest rates but suggested additional fiscal stimulus might be needed to prevent long-term economic damage. Retail sales plunged in April (see exhibit below) and another 3 million Americans filed for unemployment benefits. Trade tensions with China heated back up as President Trump indicated he had no interest in resuming talks with Chinese President Xi Jinping.