Renewed concerns over the ultimate profitability of the massive spending on AI drove the S&P 500 to a loss, led by the selloff in technology stocks. By contrast, more traditional stocks tied the rest of the economy rose. The economic news showed a continuing rebound in manufacturing and a still steady services sector. Overseas, the economic news showed a sluggish Eurozone and steady growth in Japan and Emerging Markets. The S&P 500 ended the week at -1.95% with Foreign Developed at -1.29% and Emerging Markets at -4.44%, the latter reflecting the AI selloff. In the US, Value was positive against losses in Growth and Small Caps outperformed Large Caps. Treasury Bond yields declined along with the decline in oil prices, resulting in a fractional gain for..... (click for more)

Continuing enthusiasm for the Artificial Intelligence (AI) trade coupled with a steady stream of solid economic news, helped financial markets to mostly look past the Iran War. Positive comments from President Trump and Treasury Secretary Bessent in the final week of the month regarding progress in the Iran War negotiations, further helped markets look past the War. Overseas, China and Brazil reported positive upgrades in business activity with Japan showing improvement in consumer spending. The S&P 500 ended the month up 5.15% with Foreign Developed at 3.07% and Emerging Markets at 9.69%, the latter reflecting the rally in chip stocks related to the AI trade.  In the US, Large Caps outperformed Small Caps, while Growth outperformed Value, both of which were.... (click for more)