Markets were mostly higher last week, as earnings reports started to pick up. Recently, it has been encouraging to see sectors outside of technology doing well. Financials kicked off earnings season, and have been one of the best-performing sectors this year, even as incumbents face an interesting future. Emerging is a new generation of crypto & blockchain-focused financial institutions that embrace the further digitization of the economy, and we are witnessing technological progress expand from the technology sector and into others.

​In what was a relatively quiet week, markets were modestly lower across the board. New tariff announcements from the administration were met with a limited response in markets, as it seems most investors do not believe that the new Aug 1st deadlines will hold, or that the newly announced tariff rates will come into effect. Many negotiations are ongoing, and several trading partners have indicated a desire to reach deals before the end of the month. Meanwhile, this week will start to see things pick up as we get the latest inflation and retail sales data and earnings season kicks off in a bigger way, with many of the largest financial institutions reporting. We continue to expect to see somewhat sluggish, but still positive, economic data and ongoing corporate resilience through earnings data.

The quote below may have resonated more from mid-February through early April, when we were in the throes of a nearly 19% decline in the S&P 500. Now, with the benefit of hindsight, it serves as a reminder of the condition we all experience as investors. The tone of this commentary would have undoubtedly been different had we written it during that downturn.

​It was a strong week for equity markets with stocks doing well across market caps and geographies. Many of the worries that plagued markets at various times during the first half of the year seem to have diminished. While there is still plenty of uncertainty, things seem to be better than feared. For stocks, it seems to always come down to the bottom line of earnings, and with a somewhat clearer tariff picture, it would appear that earnings will hold up relatively well in 2025. 

Markets were again mixed last week, as external factors likely continue to play their part. The ongoing tensions in the Middle East have some investors on edge, and as the situation plays out stocks, bonds, and oil prices are likely to continue to fluctuate. Meanwhile, the Fed held rates
steady at their June meeting, as they remain in a holding pattern.