Markets faced modest declines across most major indices last week, with the S&P 500 down 0.39% and the NASDAQ slipping 0.63%. The Russell 2000 continued to underperform, reflecting weakness in small-cap stocks. Gold prices surged over 3% for the week and are now up over 30% year-to-date, signaling investor concern over inflation and geopolitical risk. Meanwhile, the Federal Reserve is expected to hold interest rates steady, though the market is watching closely for updated inflation expectations and any indication of policy shifts based on the Dot Plot projections. Housing remains a pressure point, with tightening mortgage conditions contributing to widespread price declines.

On the geopolitical front, tensions in the Middle East have impacted energy markets, though oil price spikes appear contained due to Iran’s limited global oil output. Developments in Russia and cartel-related activity in Mexico are also being monitored for potential market disruptions. In portfolio strategy, PVG Asset Management reports strong returns in energy holdings and is cautiously rotating out of technology laggards and into selective opportunities within healthcare, consumer, and financial sectors. With valuations high and seasonal volatility ahead, PVG is scaling back equity exposure and positioning portfolios for possible Fed easing and ongoing macro uncertainty.

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