The S&P 500 faced downward pressure this week, declining over 1% as technology sector weakness outweighed gains in healthcare and energy. Treasury yields rose despite intervention attempts by Treasury Secretary Scott Bessent, signaling increased volatility and term premium concerns as U.S. national debt surpassed $40 trillion. Commodity markets rallied, with crude oil reaching $87 per barrel and gold climbing 6% amid geopolitical tensions and skepticism regarding yield curve control. While industrial production remains sluggish, high-tech sectors like semiconductors continue to provide a modest boost. Economic data shows persistent inflation, with import prices ex-petroleum hitting new local highs and services PMI reaching its highest level since 2024. Market participants remain focused on upcoming PCE data and Chairman Warsh’s remarks at the Jackson Hole conference to gauge future Federal Reserve policy direction.
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