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Stocks Drop
The stock market’s positive early-week momentum didn’t hold, and the major U.S. indexes finished the week down roughly 2%. The market’s fourth negative week in a row left the S&P 500 6.8% below the record high it reached in late January. The NASDAQ was 9.6% below its October 2025 peak — just shy of the 10.0% threshold for a correction.
Prices of U.S. government bonds fell for the third week in a row, lifting the yield of the 10-year U.S. Treasury to Friday’s close of 4.39% — the highest level in about eight months. The yield of the 2-year note climbed more sharply to 3.90% amid concerns about inflation and the prospect of fewer rate cuts ahead.
Gold prices dropped nearly 10%, falling for the third week in a row and interrupting a precious metals rally that dates to early 2025. Gold futures were trading around $4,500 per ounce on Friday afternoon, down from a record high of more than $5,500 set in late January.
After two weeks of surging oil prices, U.S. crude remained relatively stable but at elevated levels. On Friday afternoon, oil was trading around $99 per barrel — up slightly from about $98 at the end of the previous week, but well above a recent low of around $65 in late February. Year to date, oil was up 74%.
The U.S. Federal Reserve kept its key interest rate unchanged for the second meeting in a row, in line with market expectations. Policymakers maintained their forecast for one additional rate cut this year, and Chair Jerome Powell expressed concern that inflation remains elevated amid economic and geopolitical uncertainty.
The U.S. Federal Reserve had plenty of company around the globe in keeping its key benchmark interest rate unchanged amid concerns about inflationary pressures. On Thursday, central banks in Japan, England, Sweden, and Switzerland also kept their key rates intact.
A report on U.S. wholesale price trends raised concerns about prospects for increased inflationary pressures at the consumer level. The Produce Price Index posted a 0.7% month-over-month gain in February, well above economists’ consensus expectations for a 0.3% increase and above January’s 0.5% figure. On a year-over-year basis, headline prices rose by 3.4% in February.
Less than a month before companies begin reporting first-quarter results, analysts are expecting that companies in the S&P 500 will report double-digit earnings growth for the sixth consecutive quarter. As of Thursday, analysts surveyed by FactSet forecast the index’s year-over-year growth rate in the first quarter would be around 12.5%.
Source: John Hancock Investment Management
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We are excited to announce the hiring of our new associate, Eli Culley!
Eli is a Nashville native and Associate Advisor at AJ Advisors. A graduate of Hume-Fogg Academic Magnet High School, he earned his degree from The College of Wooster. Eli holds his Series 66 securities license and Life Insurance license, and is currently pursuing his CFP® certification to expand his expertise in comprehensive financial planning.
Eli and his wife, Olivia, are proud parents to their son, Everett, and just welcomed their daughter, Margaret, this past week! Outside the office, Eli is a classically trained tenor and sings at St. George’s Episcopal Church. He enjoys time at home with his family, studying and performing classical music, and looks forward to developing lasting relationships with the families of AJ Advisors.
Eli has begun assisting with daily operational and account management tasks. He will be helping Andrew and John in their direct work with clients, including building financial plans and implementing recommendations from client meetings.
Get to Know Eli!
Favorite Nashville Restaurant: Sperry's. Classic Nashville spot with a great atmosphere.
Favorite Place I have travelled to: One of my favorite places I’ve traveled to is Prague. I had the opportunity to perform there as part of the Nashville Symphony Chorus several years ago. It’s a beautiful city with so much history, and getting to experience it through music made the trip especially memorable.
Favorite Movie: The Lord of the Rings Trilogy. I am a huge nerd when it comes to fantasy fiction.
Fun Fact: I am a classically trained tenor and sing professionally in a church choir here in Nashville.
Favorite Hobby: Spending time with my family, staying involved in music, and getting outdoors when I can.
| | What's the Difference between Generative AI and Agentic AI? | | |
Many Americans rely on artificial intelligence (AI) tools every day, sometimes without realizing they’re doing so. Voice-activated home assistants, for example, are useful for checking the weather, setting reminders, or listening to music. Voice assistants are just one form of AI. Over the past few years, two more powerful approaches have emerged that are reshaping how we work: generative (gen) AI and agentic AI.
Gen AI: Responds to prompts
Gen AI chatbots have become widely available. This type of AI is reactive and task-oriented, helping people conduct research, draft emails, create images, write music, and code websites, reported Adam Zewe of MIT News. Gen AI systems:
- Recognize patterns and rely on that knowledge to predict what comes next.
- Respond to user prompts, which affect the quality of output.
One drawback is that AI chatbots can hallucinate, meaning they confidently generate inaccurate answers. When using gen AI, human guidance and oversight are required to ensure the quality of the end product.
AI agent: Acts on its own
Last year, agentic AI became more prevalent. Agentic AI systems are partially or fully autonomous, meaning they perceive, reason, and act without human supervision, according to Beth Stackpole of MIT’s Ideas Made to Matter. AI agents are:
- Integrated with software systems to complete complex tasks independently, and
- Contained by robust strategy and risk management frameworks.
There are risks and challenges to agentic AI. Stackpole cautioned that organizations implementing these tools may find them to be unreliable or prone to unethical behavior. There are also cybersecurity and accountability issues.
What do we want AI to do?
Recently, Bloomberg’s Sommer Saadi and Stephanie Flanders spoke with Nobel Prize–winning economist Daron Acemoglu, who believes that “the greatest economic benefits would come from ‘pro-worker AI’ that enhances human capabilities, enabling workers to perform more complex and valuable tasks. But current business incentives, market structures and policy frameworks favor labor replacement.”
As AI continues to evolve, the stakes of getting it right are becoming considerably higher. The question is no longer how AI can help us work smarter; it's how we ensure these tools serve people. Whether the future belongs to pro-worker AI or labor-replacing automation will depend less on the technology and more on the choices organizations, policymakers, and workers make today.
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AJ Advisors
www.ajadvice.com
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Phone: (615) 709-8709
Fax: (615) 709-8709
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John Stauffer, CFP®
Partner
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Andrew Quinn, CFP®
Partner
| | Past performance does not guarantee future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product (including those recommended or undertaken by AJ Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any indicated historical performance level(s), be suitable for your portfolio or individual circumstances, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. You should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional adviser of their choosing. AJ Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the content herein should be construed as legal or accounting advice. If you are an AJ Advisors, LLC client, please remember to contact the firm, in writing, if there are any changes in your financial situation or investment objectives or if you wish to impose, add, or modify any reasonable restrictions on our investment advisory services. Until so notified, AJ Advisors, LLC will continue to rely on the most recent information provided. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available upon request. | | | | |
