Trade tensions and tech concerns weighed on the markets last week with tariff threats between the U.S. and China escalating. On Friday, President Trump announced plans to add tariffs on another $100 million of Chinese goods in addition to the $50 million already proposed. China responded that it will strongly retaliate against this new proposal and the fears of a trade war escalated. The President also made movement this week toward other agenda priorities – lowering regulations on vehicle emissions and banking activities as well as protecting the border. Meanwhile, the March jobs report indicated fewer jobs were created last month than expected, but that employment remains at healthy levels.
U.S. large cap and emerging market stocks were hit the hardest last week – down 1.3% and 1.8%, respectively. However, U.S. large cap stocks experienced that loss on the heals of a small first quarter decline, while emerging market stocks are still up for the year. Small cap and developed international stocks caught less of the downdraft from the trade concerns. A bright point in the market last week was the successful IPO of Spotify, which used a market-driven pricing approach versus having a set initial IPO price. Bond funds once again provided some protection last week, with mainly flat returns.