📊 Weekly Market Recap
- S&P 500 return Year-to-date were approximately +1%
- S&P 500 3 month return were approximately +2.9%
- S&P 500 return over the past 5 days were approximately -.25%
This Week in the Markets – 3 Things to Know
Sell-Off Mood Takes Over Wall Street– Markets took a clear turn earlier week as major U.S. indexes slid and investors dialed back exposure. A string of economic data releases shaped sentiment, with mixed readings on growth, inflation, and labor conditions keeping investors on edge. Manufacturing and services data failed to point to a clear direction, raising concerns about whether the economy is slowing or simply normalizing.
Tech Weakness Meets a Data-Heavy Week– Tech stocks stayed under pressure. Earnings reports this week added fuel to the sell-off, as several companies highlighted rising costs tied to aggressive AI and infrastructure spending. While long-term growth narratives remain intact, investors are increasingly questioning the timeline for profitability and cash flow. High valuations left little room for disappointment, and even solid results were met with skepticism. That tension showed up in sharp, day-to-day moves across the tech sector. Traders weren’t just reacting to earnings beats or misses, they were reacting to guidance and spending plans. When confidence in near-term returns fades, caution tends to take over, and tech felt the weight of that shift this week.
Markets Walk Back the Panic- Then today (Friday) happened. What initially looked like mounting stress across markets is increasingly reading as an overreaction rather than a true breakdown. Equities wobbled early in the week as rates and volatility moved higher, but the selling pressure faded quickly. As of today, stocks have not only stabilized, but the Dow pushed to new all-time highs, a strong signal that underlying risk appetite never really left the market. Bonds followed a similar path, with yields rising on positioning and headline reactions before settling back into a more orderly range. The lack of sustained stress in credit markets reinforced that financial conditions remain intact. Crypto added some short-term noise, but its pullback lacked follow-through and failed to derail broader market momentum. Overall, the week looks less like a warning sign and more like a fast sentiment reset that ultimately left markets on solid footing.
Risk Repriced Across Markets
This week saw a noticeable rotation from growth into value stocks as investors pulled back from high-valuation areas of the market. After months of growth and tech leadership, valuations began to feel stretched as macro uncertainty resurfaced. Value-oriented names, typically more cash-flow focused and defensive, held up better as risk appetite cooled. That shift was reinforced by a spike in the VIX, which is basically the measure of volatility. Investors grew more selective, favoring earnings reliability over paying a premium for distant growth. Rising costs and tighter financial conditions made stability more attractive. The rotation reflected caution and recalibration rather than outright bearishness. When volatility rises alongside leadership changes, it often signals reassessment, not panic.
Labor market data added to the week’s choppiness, particularly following a surprise increase in jobless claims. While a single report doesn’t establish a trend, it was enough to spark debate about whether the labor market is beginning to cool. Employment data carries extra weight given its impact on consumer spending and overall economic momentum. Higher claims also complicate the inflation narrative and future policy expectations. Markets responded with a modest shift toward defensive positioning rather than broad risk-off selling. The tone remained measured. Investors appeared to slow down, digest new information, and reassess exposure rather than rush for the exits.
By the end of the week, mixed manufacturing and services data kept the economic picture complex but not discouraging. Manufacturing remained uneven amid demand uncertainty, while services continued to expand, albeit at a slower pace. These cross-currents made it harder for markets to lock onto a single growth or inflation narrative, contributing to short-term volatility. Still, the week ended on a steadier note as investors found reassurance in continued economic resilience and selective strength beneath the surface. Rather than breaking down, markets showed an ability to stabilize after digestion. The takeaway wasn’t clarity, but progress. In a volatile environment, the ability to absorb uncertainty and finish stronger is often a constructive sign.
S&P 500 SECTOR SNAPSHOT – Past Week
