Markets were undeterred this week amid a changing landscape. Will economic data settle markets, or will recent trends continue?
Monday S&P 500 0.72% | NASDAQ 1.12%
Markets came out of the gates strongly after the holiday weekend. Notable gains in equities reflected confidence in flows, particularly towards growth stocks. The Dow Jones closed at an all-time high while oil prices fell on news of increased production by OPEC+ countries.
Tuesday S&P 500 0.45% | NASDAQ 1.16%
Tech stocks fell throughout trading on Tuesday as tensions rose in the Strait of Hormuz. A fragile ceasefire hangs in the balance as new attacks threatened peace in the region. The 10-year treasury advanced higher to 4.55% on the day in a risk-off trade.
Wednesday S&P 500 0.28% | NASDAQ 0.20%
Notable news in May’s Consumer credit was released which showed a decline in higher interest debt (credit cards). Tax refunds, on average, were higher in 2025 than in 2024 which helped borrowers pay down revolving debt. Additionally, the Federal Reserve’s June minutes revealed members argued a case for a rate hike last month.
Thursday S&P 500 0.81% | NASDAQ 1.12%
Markets staged a comeback after two days of increased downward pressure. Tech and oil stocks were big gainers as markets digest developments abroad and prepare for corporate earnings next week. Treasuries fell slightly after the rally.
Friday S&P 500 0.42% | NASDAQ 0.29%
The tech rally slowed ahead of the weekend as rhetoric had cooled on the international stage later in the week. Growth stocks were the biggest movers this week although value stocks have led so far this year. The moves could be in anticipation of earnings season kicking off next week as traders look to be opportunistic.
Conclusion S&P 500 1.23% | NASDAQ 1.74%
This week involved its fair share of ups and downs with energy markets and tech finishing higher. This week revealed a bet on earnings growth even in an inflationary environment with higher yields. In short, there is pressure on the long end of the yield curve, reflecting higher inflation expectations for longer. In these cases, bondholders are selling their existing bonds preemptively. If the risk of higher inflation persists, investors demand a higher yield over time. The opposite is also true, where risks for near-time calm would create downward pressure on yields. This, however, wasn’t the case this week, which suggests that capital is being put into risk-on assets. If those returns offer potential yield exceeding the risk-free rate of return (treasuries), equity markets will respond positively. If energy markets remain volatile, then treasuries could remain elevated although it is not a direct correlation. A few days of increased volatility shouldn’t dictate longer-term forecasts, and this week was certainly a textbook example.
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