Your Capital Markets Snapshot: Markets Displayed a Combination of Optimism and Caution

Last week was mixed for capital markets. US equity markets initially crept upward, with the S&P 500 and Nasdaq posting new all-time highs in the first half of the week. However, weaker than expected retail spending data led to all three major US indices posting losses for the week. Two trends we are monitoring to begin this year include: 1.) U.S. mega-cap technology stocks are lagging the broader market after their recent dominance in 2023 and 2024; and 2.) International equities, largely driven by European markets, are outperforming their U.S. counterparts. Despite some weak economic releases, Treasury yields continue to stabilize after rising for much of September 2024 – January 2025. Last week rates slightly eased falling between 0-8 basis points. Overall, markets displayed a combination of optimism and caution, highlighting the importance of diversification across sectors and regions.