Market developments
Equities: Stocks fell this week, with the S&P 500 down 1.5% and the Nasdaq dropping over 2.5%, amid signs of weakness in the U.S. economy and worries about inflation and a looming trade war. Economists have also lowered their expectations for U.S. growth this year, citing softer consumer spending and mounting uncertainty created by trade policy.
Fixed Income: Government bond yields, such as the U.S. 10-year Treasury, ticked up as high as 4.4% this week, before retracing back to ~4.25% as investors digest and react to the hotter-than-expected inflation data and lower than expected economic growth. High-yield corporate bonds also faced selling pressure as risk-off sentiment grew.
Commodities: Crude oil prices climbed this week, supported by OPEC+ production discipline and geopolitical risk, while gold continued to hit new highs as investors look to it as a hedge against economic uncertainty.