Market developments
Equities: Global equity markets experienced volatility but ended the week on a positive note, with the S&P 500 and Dow Jones Industrial Average erasing early losses to post gains, driven by strong U.S. tech earnings from companies like Microsoft and Meta Platforms. Investor sentiment was buoyed by signs of easing U.S.-China trade tensions, though concerns about potential tariffs continued to create uncertainty. Despite a reported U.S. GDP contraction, consumer spending resilience and a strong jobs report supported a late rally in U.S. and European stocks. However, the U.S. stock market has faced its worst first 100 days of a presidential term since 1974, reflecting ongoing trade policy concerns.
Fixed Income: Treasury yields increased slightly, with the 10-year Treasury settling at 4.3%, offering some relief to bond markets amid trade policy uncertainties. Fixed income markets have provided high yields, attracting investors seeking insulation from equity volatility and tariff-related risks. However, evolving U.S. trade and fiscal policies continue to weigh on longer-duration assets, with active management seen as key to navigating these challenges.
Commodities: Commodity prices faced downward pressure, with global prices expected to hit their lowest levels of the 2020s due to ample oil supply and faltering economic growth. Gold prices dropped to a twoweek low, driven by easing trade tensions and a holiday in China, while crude oil prices also sank amid mixed economic signals.