Market Data as of Week Ending: 3/28/2025 unless noted otherwise
Stocks rallied at the start of the week but quickly reversed course, ending the week lower. Investors remained risk-off as consumer confidence continued to decline, and uncertainty surrounding long-term tariff policy persisted. Value stocks outperformed growth, extending their year-to-date lead. Performance across size was mixed, with large-caps underperforming mid-caps, while small-caps continued to lag. Technology and communication services were the worst-performing sectors as selling pressure on the Magnificent Seven mounted. Meanwhile, consumer staples was the best-performing sector, benefiting from the risk-off environment. Foreign stocks continued to outperform domestic equities despite finishing the week lower, as fresh auto tariff announcements weighed on key auto-trading partners.
Fixed-income performance was mixed as yields fluctuated throughout the week. Government bonds outperformed corporate and high-yield bonds as spreads widened slightly. Short-term government bonds were the best-performing sector, benefiting from lower short-term yields. The 2-year Treasury yield declined to 3.89%, while the 10-year Treasury yield rose by two basis points to 4.27%, widening the 2-10-year yield spread to 0.38%. Investment-grade corporate bond yields and high-yield bond yields rose to 5.17% and 7.86%, respectively.
Last week’s economic data did little to reassure nervous investors. Consumer confidence, as measured by the Conference Board, dropped 7.2 points to 92.9, marking the fourth consecutive month of declines. The Expectations Index fell to 65.2, its lowest level in 12 years. The Michigan Consumer Survey also reported a decline in sentiment, with a 12% drop in February’s reading. Core PCE, the Fed’s preferred inflation measure, came in hotter than expected, rising 0.4% in February. Personal income also rose more than expected, increasing 0.8% after a 0.7% gain in January. Personal spending increased but fell short of estimates. S&P Global Flash PMI rose to 53.5, with strength in the service sector offsetting weakness in manufacturing output. New orders for durable goods rose 0.9% in February, surpassing forecasts of a 1.0% decline.