Sunday Brief

This past week was less about surprise and more about digestion. Markets came in cautiously ahead of the Federal Reserve, got the rate cut they expected, and then spent the rest of the week reassessing what that actually changed. Early momentum pushed indexes toward fresh highs, but by Friday, enthusiasm had thinned — particularly in areas that had already led for most of the year.

The Fed provided short-term relief, not a green light. Midweek gains gave way to rotation as yields firmed and valuation concerns resurfaced. That shift shows up clearly in the data below: leadership narrowed, technology absorbed most of the pressure, and capital quietly rotated elsewhere.

U.S. equities traded with mixed momentum. Markets opened slightly lower ahead of the Federal Reserve meeting, rallied midweek following a 25-basis-point rate cut, then faded into the end of the week as profit-taking picked up. The Dow finished higher, supported by cyclical and defensive strength, while the S&P 500 ended slightly lower after briefly reaching new highs. The Nasdaq underperformed as technology stocks faced renewed selling pressure late in the week.

Sector performance reflected clear rotation rather than broad market weakness. Technology was the primary drag, pressured by profit-taking and valuation concerns in mega-cap names. Energy declined modestly alongside falling oil prices as supply concerns outweighed demand optimism.

Financials led the market higher as higher yields supported net interest margin expectations, while industrials benefited from steady economic signals and a softer dollar. Healthcare also advanced as investors rotated into more defensive positioning amid increased volatility in growth sectors.

Crypto markets traded in a narrow range with mixed performance. Bitcoin and Ethereum posted modest weekly declines, reflecting consolidation after prior gains. XRP also moved lower, tracking broader market sentiment rather than any project-specific developments.

Overall crypto price action mirrored equities, with midweek stabilization followed by late-week hesitation as risk appetite cooled.

Solana

Solana declined 4.10% on the week, marking the largest move among major cryptocurrencies. The pullback followed a period of strong performance earlier in the quarter and appears driven primarily by profit-taking. While institutional interest remains intact, near-term momentum softened as traders reduced exposure amid broader market consolidation.

Commodities showed divergent performance. Precious metals led the group higher as gold and silver benefited from the Federal Reserve’s rate cut and a weaker dollar. Silver significantly outperformed, extending its strong year-to-date trend.

Oil prices declined as oversupply concerns dominated, with elevated inventories and steady production pressuring prices. Copper pulled back modestly after recent highs, reflecting short-term profit-taking rather than a deterioration in underlying demand.

Federal Reserve policy remained the dominant macro driver for commodities. The rate cut lowered real yields and weakened the U.S. dollar, supporting precious metals. Persistent inflation further reinforced demand for hard assets, particularly gold and silver.

In contrast, energy markets faced supply-driven headwinds. High global inventories and steady production limited upside for oil despite geopolitical developments. Industrial metals remained structurally supported by long-term demand trends, but short-term price action reflected consolidation after strong prior gains.