Insights

Stocks closed last week generally higher as tech and AI shares attracted investors, while Treasury yields continued to rise as a notable sell-off pulled bond prices lower. This result is likely due to traders trying to balance strong corporate earnings and solid economic momentum with stubborn inflation and the likelihood of additional Federal Reserve policy tightening.

Last week marked the first adjustment in interest rates in the last three years as investors spent the latter part of the week trying to figure out the implications of monetary tightening, rising Treasury yields, persistent inflation, and advancing crude oil prices.