The Major Markets closed mostly lower again last week. This marked the 5th consecutive weekly loss for the S&P 500 as it gave back 2.12%. As of Friday, the S&P 500 closed at 6,368.85, placing the index back where it was at in August of last year.

Early in the week, markets rallied as oil prices dropped on hopes of easing tensions between the U.S. and Iran. But that optimism faded quickly as conflicting headlines brought uncertainty back into focus.

From there, volatility in oil and rising Treasury yields created a tough environment, especially for large-cap growth stocks. Mega-cap tech led the downside, with software and internet names hit particularly hard. But not all the indices saw red last week. Mid and small cap stocks did see some green. This highlights some of the rotation that has been taking place this year. 

At the same time, we saw strength in other areas. Energy and materials outperformed as oil pushed back toward $100 per barrel, and defensive sectors like utilities and consumer staples also held up relatively well.

By the end of the week, selling pressure intensified as geopolitical tensions escalated and oil prices climbed again, dragging the broader market lower. Markets continue to be driven more by macro forces than fundamentals. Until these forces stabilize, expect continued volatility and ongoing sector rotation.