Weekly Market Update
Mar 24, 2025
Update on asset class performance and key market themes driving performance.
Asset Class Performance
| Asset Class | 1wk | 28d | 90d | 1yr | 3yr |
|---|---|---|---|---|---|
| US Growth Equities | 2.54% | -5.51% | -8.69% | 12.81% | 38.61% |
| US Small Cap Blend Equities | 1.87% | -3.27% | -5.30% | 4.54% | 13.03% |
| US Total Mkt Equities | 1.69% | -3.53% | -4.41% | 11.34% | 29.87% |
| US Large Cap Blend Equities | 1.53% | -3.60% | -4.24% | 11.93% | 32.69% |
| US Small Cap Value Equities | 1.42% | -2.49% | -3.89% | 4.45% | 14.76% |
| US Large Cap Value Equities | 0.56% | -1.11% | 1.90% | 10.68% | 25.27% |
| Broad Market Commodities | 0.36% | -1.68% | 5.51% | 2.94% | -9.22% |
| US TIPS | 0.34% | 0.60% | 2.98% | 4.90% | -1.84% |
| Total Bond Mkt Ex-US | 0.14% | -0.79% | 1.47% | 3.09% | 3.11% |
| US Short-Term Bonds | 0.14% | 0.58% | 2.15% | 5.25% | 8.38% |
| Gold | 0.14% | 1.83% | 14.80% | 38.53% | 52.58% |
| Short-Term US Treasuries | 0.10% | 0.51% | 1.50% | 4.94% | 8.07% |
| 3-7 Year Treasuries | 0.09% | 0.86% | 2.46% | 4.62% | 3.95% |
| US Real Estate Equities | -0.05% | -0.37% | 2.52% | 12.68% | -3.43% |
| US Total Bond Mkt | -0.07% | 0.48% | 2.57% | 4.38% | 2.02% |
| Intermediate-Term US Treasuries | -0.10% | 0.89% | 3.03% | 3.66% | -2.80% |
| Pacific Developed Markets Equities | -0.43% | 1.58% | 5.50% | 1.30% | 9.73% |
| Developed Markets Ex-US Equities | -0.87% | 2.29% | 9.00% | 7.70% | 19.29% |
| Long-Term US Treasuries | -0.94% | 0.21% | 2.85% | -0.53% | -22.77% |
| International Ex-US Mkts Equities | -0.96% | 1.97% | 7.31% | 9.31% | 17.16% |
| Emerging Mkts Equities | -1.24% | 1.29% | 5.02% | 12.26% | 7.07% |
| Europe Developed Markets Equities | -1.62% | 2.99% | 12.68% | 10.84% | 28.04% |
Key Market Themes
Targeted Tariff Approach
- A more targeted approach to tariffs eased trade tensions for growth-oriented and small companies.
- Reduced trade barriers improved sentiment for domestic small caps with less international exposure.
- Tech and consumer discretionary sectors rallied due to expectations of lower input costs.
Sustained AI Momentum
- Continued optimism around AI drove growth in tech stocks, benefiting large-cap companies.
- Increased investor interest in smaller tech firms and AI startups lifted small-cap blends.
- Widespread enthusiasm for AI technology improved sentiment across the total market.
Resilient Consumer Spending
- Strong consumer spending data positively impacted consumer discretionary and retail stocks.
- Resilient American consumers particularly supported domestically-focused small-cap companies.
- Strong spending alleviated economic slowdown fears, lifting the broader market and total indices.
Geopolitical Tensions and Trade Uncertainty
- Conflicts in Ukraine and the Middle East are increasing investor anxiety in European and emerging markets.
- Potential new tariffs are causing a shift towards domestic investments in the US.
- Retaliatory trade measures are dampening enthusiasm for non-US equities, impacting global growth.
Divergent Economic Growth and Monetary Policies
- US GDP growth at 3% contrasts with slower growth in other regions, favoring US assets.
- Varied regional monetary policies create uncertainty in currency markets and equity attractiveness.
- Expectations of US interest rate cuts are strengthening the dollar, making international investments less appealing.
Shifting Investor Sentiment and Market Concentration
- US mega-cap technology stocks are skewing market returns, making international portfolios less attractive.
- Concerns about China's slowdown are affecting investor confidence in emerging markets.
- Flattening yield curve raises recession fears, pushing investors towards safe-haven assets.