FactSet Evening Market Recap Factset

US equities ended mostly lower this week as the market struggled to shake off more hawkish repricing of Fed rate cut expectations and geopolitical volatility in the Middle East. Recent Fedspeak supplied ongoing support for higher-for-longer rate narrative with Powell noting this week recent data has shown lack of further progress on inflation. Beyond more hawkish Fed commentary and volatile geopolitics, some other bearish narratives from this week included a big retail sales beat, flagging AI tailwinds as NVDA and SOX are both in corrections, stretched systematic long positioning, and spiking volatility with the VIX at six-month highs.

US equities finished mostly lower in Thursday trading, ending near worst levels. For the second straight day, the market's bounce attempt ran out of gas, though not much behind today's weakness, with rates the easiest excuse as the 2Y is back near year to date highs. The April Philadelphia Fed manufacturing index notably improved month over month, hitting its highest level since April 2022, while employment remained in contraction.

US equities finished lower in Wednesday trading, ending a bit off worst levels, with the Dow Jones, S&P500, and Nasdaq closing down 12bps, 58bps, and 115bps respectively. Today's $13B 20Y auction stronger than expected after last week's string of weak auctions. Latest Fed Beige Book said economy expanded slightly, while price increases were little changed since late February, but consumer spending reports were mixed. Reports Biden will propose a big hike in tariffs on China steel and aluminum.

US equities finished mostly lower in up-and-down Tuesday trading. S&P ended down for a third-straight session with equal-weight S&P a notable laggard to the official index. Tone continued to be driven by hawkish repricing of Fed pivot expectations alongside solid economic data and sticky inflation. Another busy day of Fedspeak with Powell noting recent data shows lack of further progress on inflation.

US equities finished lower in Monday trading, ending near worst levels. Some post-bell strength began reversing early in the session, and stocks came under pressure for much of the afternoon. March retail sales beat, while ex-autos and fuel and control group sales also ahead.

US equities were lower as the S&P 500 finished down for a second-straight week, while the Nasdaq capped off a third-straight weekly decline, and its fifth in the past six weeks. The biggest story of the week revolved around inflation data. Several pieces of the bullish arguments remain intact, particularly early earnings season takeaways that suggest a firmer macro backdrop and strong early beat rates.