Last Week’s Summary
- S&P 500 Index fell 0.95%
- International Equities fell 1.78%
- Emerging Markets dropped 3.97%
- U.S. 10-Year Treasury Yield fell to 4.21%
- U.S. 4Q GDP rose by 2.3%
- Durable Goods Orders rose by 3.1%
- Initial Jobless Claims rose by 242k
- Core PCE Price Index rose 0.3% MoM
What to Watch for This Week
- M, 3/3/25 ISM Manufacturing, Construction Spending
- W, 3/5/25 MBA Mortgage Applications, ADP Employment Change, Factory Orders
- Th, 3/6/25 Initial Jobless Claims, Trade Balance, Wholesale Inventories
- F, 3/7/25 Change in Nonfarm Payrolls, Unemployment Rate
Weekly Market Recap
Global markets experienced volatility this week as inflation concerns, economic data, and trade policy developments shaped investor sentiment.
The S&P 500 rose 1.6% on Friday, helping to trim its February losses, but it remained volatile throughout the week. Treasuries extended their rally, with Two-Year Yields falling below 4%. The 10-Year Yield dropped to 4.24%, its lowest level since December.
The U.S. dollar gained 0.3% on Friday but still posted a second consecutive monthly decline. Inflation-adjusted consumer spending fell 0.5%, marking the sharpest monthly decline in nearly four years. Weak retail sales data earlier in the month signaled that economic growth may be slowing.
Trump reaffirmed that 25% tariffs on Canada and Mexico would take effect on March 4, while Chinese imports would face an additional 10% levy.
Economists warned that these tariffs could hurt U.S. growth, increase inflation, and potentially trigger recessions in Canada and Mexico. If implemented, the tariffs will raise costs on more than $1 Trillion worth of imports. Despite concerns over economic weakness, U.S. GDP grew at an annualized 2.3% in the fourth quarter.
Consumer spending, the primary driver of growth, expanded at a 4.2% pace. However, the weak start to 2025, combined with slowing growth indicators in February, has raised concerns about economic momentum.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
HOW to Invest like a PRO!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
