Weekly Market Recap and Outlook
This past week saw a notable decline in the indices, with the drift lower likely influenced by several factors: profit-taking after the prior week’s strong rally, mean reversion, a continued rally in the U.S. Dollar and 10-Year Treasury yields, and a slightly hawkish tone from Fed Chair Jerome Powell. Small-cap stocks experienced the sharpest declines, which isn’t surprising given their outsized gains the week prior. On Friday, mega-cap stocks faced pressure as well, even though market breadth remained relatively stable. Notably, the Nasdaq 100 (Q’s) was the second-worst-performing index of the week, while the S&P 500 and the Dow Jones were closely aligned, separated by just 50 basis points in weekly performance.
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