Weekly Commentary (11/10/2025) - Happy Veterans Day and Open the Government!

Happy Veterans Day and Open the Government!

Stock markets slid last week as investors worried about the economy, the longest ever government shutdown, and extended tech stock valuations.
For the week, all three major U.S. equity indexes were lower.  The S&P 500 fell 1.6%, the DJIA declined 1.2% and the tech-laden Nasdaq dropped 3.0%.  The information technology sector experienced its largest decline in seven months.  U.S. small caps, as measured by the Russell 2000, also hit a seven-month low.  International markets were also weaker as developed (EAFE) and emerging (EM) gave back 0.7% and 1.4%, respectively. The yield on the 10-year Treasury note remained unchanged at 4.11%.  West Texas Intermediate crude prices fell 1.7% to $59.86 per barrel, and gold prices were steady at $3,995 per ounce.  
Economic concerns came to the forefront as the government shutdown continues.  Consumer sentiment, according to the University of Michigan, fell to its lowest level in over three years, and has slid 30% since November 2024.  Tempering worries have been the strength of third-quarter earnings with 83% of virtually all S&P 500 companies reporting having delivered better than expected earnings, according to FactSet.
The upcoming week will hopefully see the Government shutdown resolved.  On Thursday, the consumer price index (CPI) and weekly unemployment claims will be reported.  Retail sales business inventories and the producer price index will be announced.
We urge investors to review their market risk tolerance against the asset allocation and holdings of their portfolios.
“Never was so much owed by so many to so few.” -Winston Churchill