Global markets navigated a volatile week as geopolitical tensions, resilient economic data, and shifting central bank expectations drove cross-asset performance.

Last week offered a reminder that strong economic data can be a double-edged sword for markets. Recent releases pointed to resilience across the U.S. economy, including improved ISM manufacturing and services data alongside a solid May jobs report (172k payroll growth, unemployment steady at 4.3%).

Global markets navigated a volatile but ultimately constructive week, as easing geopolitical tensions and resilient economic data helped sustain risk appetite.

Markets pushed higher last week despite a mixed macro backdrop, underscoring the resilience of risk assets in the face of lingering uncertainty.

Economic data included gains in industrial production and retail sales, while consumer and producer price inflation moved higher along with recent higher oil prices.

Last week delivered a classic “growth with inflation pressure” backdrop for markets. The Federal Reserve kept policy rates unchanged, as expected, while U.S. Q1 GDP held near trend, durable goods improved, consumer sentiment stabilized, and manufacturing remained resilient.

U.S. equity markets paused last week following a strong April rally, with most major indices finishing flat and the S&P 500 still up nearly 12% from its late-March lows.

Markets extended their rally for a third consecutive week, driven largely by a rapid de-escalation in Middle East tensions and a sharp reversal in energy prices.

U.S. equities extended their rally for a second straight week as investors responded favorably to the two-week U.S.-Iran ceasefire and the sharp pullback in crude prices. The S&P 500 gained 3.6%, the Nasdaq Composite surged 4.7%, and the Russell 2000 advanced 4.0%, underscoring a broad risk-on move across the market.