Mark Twain allegedly coined the phrase, “History doesn’t repeat itself, but it often rhymes.” No doubt, the Middle East military escalation this past week rhymed with our history in the region. Previous conflicts of this nature have added volatility to markets without a long-term U.S. economic impact. However, since these events have an impact on the price of oil, assessing the impact in the short-term and long-term is key for our economic and portfolio outlook. Such moments validate our ongoing belief in a broad, diversified portfolio for clients.  

Overshadowed by the ongoing selloff in perceived AI-disrupted industries, the legal landscape of U.S. trade policy changed significantly last Friday. In a 6-3 decision, the Supreme Court ruled that the administration cannot use the International Emergency Economic Powers Act (IEEPA) to unilaterally impose tariffs.

Over the last several weeks, pressure on software stocks has intensified as investors grapple with what some have dramatically labeled a coming “SaaSPocalypse.”

It was an exceptionally busy week for economic data, and by and large, the news this week was very favorable. After a period of weakness in the second half of 2025, the labor market appears to be finding its footing.  

It is a common refrain that markets hate uncertainty, and this week has delivered plenty. On both the labor front and in technology, the movers in the capital markets were driven by a combination of delayed data, softening employment signals and a sharp repricing in the stock prices of software and services companies. 

This week, financial markets were shaped by a convergence of monetary policy continuity and rising attention to Federal Reserve leadership. At its January meeting, the Federal Reserve voted to hold interest rates steady, marking the first pause since it began easing policy in mid-2025.

Investors returned from the long weekend to something more jarring than the usual post-holiday lull: a burst of geopolitical theater that triggered the sharpest pullback in the S&P 500 since last October.

Not too long ago, robots were mostly considered science fiction and far-fetched possibilities. Now the future that once felt distant showed up at the Consumer Electronic Show (CES) this year in Las Vegas, where companies gather to showcase their latest inventions.

2025 is officially in the books, marking the third consecutive year of double-digit gains for the market. It wasn’t just a good year for returns — it was an eventful one, too. At the start of 2025, our optimism wasn’t based solely on sentiment; the data supported it. 

As New Year’s celebrations wrap up and 2026 begins, the U.S. economy is sending signals that are difficult to reconcile: consumer sentiment is deeply negative, yet spending remains resilient.