Market Memo

The U.S. markets posted gains last week, though the green numbers barely tell the full story. It was a high-stakes, roller-coaster week as investors tried to navigate a mix of geopolitical tensions, slowing economic growth, and blockbuster earnings reports. The week kicked off with a “software apocalypse” as fears of AI-driven disruption hit tech giants like Salesforce and IBM, while the Dow plunged 800 points early on after the White House announced a 15% global tariff, rattling the market. Mid-week, sentiment swung hard when NVIDIA smashed expectations with $68.1 billion in quarterly revenue, proving AI infrastructure remains the market’s main engine, and stocks like Dell surged over 21% after strong forecasts, though inflation worries and rising Treasury yields kept the broader sector on edge. By Friday, a Supreme Court ruling limiting executive tariff powers fueled a relief rally that helped investors look past a disappointing 1.4% GDP growth print and 2.9% PCE inflation reading, while traditional heavyweights like Goldman Sachs struggled under persistent interest rate fears. Tech led the way, snapping the Nasdaq’s five-week losing streak, but the rally felt more like a veneer over a volatile week marked by cautious Fed minutes and rotations into defensive blue chips such as Walmart and Eli Lilly, leaving investors questioning whether this fragile “Goldilocks” resilience can survive the looming threat of stagflation.