Markets remain reactionary to Fed policy
The S&P 500® Index fell 2% last week after closing at a record high the previous week on incremental hawkishness from the Federal Reserve. The Dow had its worst week since October at -4%, while the NASDAQ was little changed. Investors quickly began to price in a peak in Fed dovishness, along with the reflation trade and economic growth. Technology and growth names were resilient, with notable weakness in commodities, financials, and cyclicals.