Your Capital Markets Snapshot: A Strong Positive Week for Most Asset Classes

Last week was a strong positive week for most asset classes, with particularly strong returns for US equities and Bitcoin. The benchmark 10-year Treasury yield briefly reached a 14-month high of 4.8% before retreating due to encouraging inflation data, with core CPI unexpectedly edging lower. Despite strong economic growth and policy uncertainty, the Federal Reserve showed no urgency to cut rates further, leading investors to scale back their expectations for rate cuts this year. The start of the earnings season highlighted the influence of corporate profits on stock market performance, with banks reporting strong results. Overall, the markets saw a mix of volatility and positive momentum, driven by economic and corporate strength.