- U.S. equities, as measured by the S&P 500 Index, declined slightly last week as investors continued to price in the likelihood and magnitude of a potential recession.
- Growth stocks lagged value shares, which were supported by gains within constituent sectors. Small caps also lagged large caps.
- Within the S&P 500 Index, defensive sectors including consumer staples, utilities, and healthcare were positive and were the top performers. More cyclically sensitive areas of the market, including consumer discretionary and energy, were the biggest laggards.
- A variety of retailers reported earnings last week with mixed results. Target shares fell meaningfully after the company announced disappointing consumer spending while other retailers, such as Walmart, Ross Stores, and Foot Locker had more constructive earnings.
- So far this year, value shares continue to lead growth stocks while large caps have led small caps.
