The Major Markets wrapped up a volatile, abbreviated, headline-driven week with mixed results, masking sharp rotation beneath the surface. Early in the week, renewed tariff threats toward the EU and NATO sparked a risk-off selloff . Tuesday’s 2% drop in the S&P 500 marks the new worst session of the year and consequently pushed the index below its 50-day moving average at least temporarily.

Sentiment stabilized midweek as rhetoric eased, inflation data remained steady, and trade headlines improved. Stocks rebounded on Wednesday and Thursday, though momentum faded into Friday as investors repositioned ahead of a heavy slate of mega-cap earnings. As of Friday, 14% of S&P 500 companies have reported with 75% of those companies beating their EPS estimates.

By week’s end, the S&P 500 fell 0.35%, the Dow lost 0.53%, and the Nasdaq dipped less than a tenth of a percent. Small and mid-caps lagged modestly. Sector performance showed clear rotation: financials, industrials, real estate, and utilities struggled, while energy and materials led, supported by strength in natural gas, oil equities, and packaging stocks.

Overall, markets remain resilient near record highs, but leadership is narrowing. With several Magnificent Seven earnings ahead, execution from mega-caps will be key in the week ahead.