Investment Week at a Glance

Stocks finished lower for the week. The Dow Jones Industrial Average fell 1.2%, the S&P 500 was down 1.4%, and the NASDAQ fell 2.1%. Foreign stocks (MSCI EAFE) were up for the week, rising 2.9%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.05%.  (Data source: Wall Street Journal)

Mixed Economic Data

We have gotten a slew of updates on the economy from various reports recently. Inflation came in at 2.4% year over year, a surprise to the downside as prices have continued to stabilize, a positive for the economy. Jobs numbers also came in better than expected as the economy added 130,000 jobs and unemployment came in at 4.3%. Retail numbers were a little disappointing, and personal savings rates are in decline. While the overall picture still looks positive, investors will continue to follow closely for any decline in economic conditions.

International Equities Continue to Outperform

Last year, we saw international equities outperform domestic equities for the first time in a while. This year has been more of the same to start as the MSCI EAFE is up nearly 9% as the S&P 500 and NASDAQ are negative to start 2026. International markets trailed U.S. markets for so long that many investors turned away from international exposure before last year. This is a prime example of why having a diversified portfolio can be beneficial in the long run. Another example is the MAG 7 stocks, which have not performed well this year as questions around AI investment have scared investors away.

Rivian Stock Rises 26% Friday

The electric car manufacturer, Rivian, beat earnings expectations and provided guidance for 2026, which included estimated deliveries of 62,000 to 67,000. The company continues to expect to lose roughly $2 billion in 2026 as it did in 2025. The company achieved its first positive gross profits on a cash basis in Q4 of 2025. The company also has approximately $6 billion in cash to sustain itself through this period of investment as it attempts to gain market share in the EV market. (CNBC)

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Quiz

What is the combined performance of the Mag 7 to start 2026? (Scroll Down for Answer)

1. -7%
2. -2%
3. 3%
4. 9%

Answer:

1. -7%, the Mag 7 has struggled to start 2026 after leading the market higher over the past couple of years. The mega cap tech companies have been beat up as investors have some worry around AI investment.

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