The S&P 500® sits near record highs, but weak market breadth, sticky inflation, and rising yields suggest a more complicated story beneath the surface.

The Federal Reserve hiked rates, and we expect there are more to come. With a hawkish Fed and a resilient economy, long-term yields may stay elevated.

Our point of view on recent market and economic activity.

What are the implications of a more hawkish Fed, and what should investors watch as markets weigh the possibility of additional rate hikes?

Fed policymakers unanimously voted to raise rates 25 basis points, the first hike since 2023, and vowed to fight inflation. Another hike is seen this year, but 2027 is in question.

Municipal bonds might still offer attractive tax-advantaged income and relatively stable credit quality for investors who understand the risks.

European equities may have support from global growth, improving fundamentals, lower relative valuations, and fiscal spending—plus diversification from the AI cycle.

Housing market expert Ivy Zelman explains why long-term demographic trends could have far-reaching implications for growth and housing demand.

History suggests slower Fed tightening tends to support stronger market returns and firmer economic growth, while faster hikes typically deepen drawdowns.