It was another bumpy month as tariff uncertainties continued to drive volatility.
Inflation ticked slightly lower and the labor market reported relatively healthy jobs growth for the month. However, consumer sentiment slumped to its lowest level in over two years as expectations regarding business conditions, unemployment, and inflation worsened for the year ahead.
The tech-heavy Nasdaq 100 was the laggard for the month, falling 7.61%. Though other US indices fared a little better, the Dow Jones Industrial Average, S&P 500, and CRSP US Small Cap Index followed the trend lower with losses of 4.06%, 5.63%, and 6.31% respectively. Defensive sectors outperformed more cyclical sectors amid the increased volatility, with value outpacing growth as a style throughout the month.
Markets overseas were more favorable compared to their US counterparts. Emerging markets gained 1.29% while developed international stocks were down just 0.01%. Chinese stocks helped support emerging countries, backed by AI optimism and supportive policies from the central bank. The prospect of further fiscal stimulus from various countries also helped bolster broad European markets.
While US stocks faced ongoing headwinds, bonds continued to provide stability. Aggregate US bonds were largely unchanged, with a slight gain of 0.04% as the 10-year Treasury yield dipped from 4.24% to 4.23%. The Fed decided to keep rates unchanged during the month, but left the door open for cuts later in the year. Chairman Jerome Powell stated the Fed was more concerned about downside risks to economic growth than upside risks to inflation.
With the first quarter of the year in the books, it’s fair to say markets have been somewhat disappointing so far in 2025. The silver lining is that a diversified approach is working relatively well compared to previous years when a concentrated group of large tech stocks were driving results. As markets continue to recalibrate, it’s important to maintain discipline. Having an investment strategy and plan in place can help minimize distractions, keeping the focus on your overarching goals and objectives.
It was a busy (and mixed) month for space travel.
Early in the month, Firefly Aerospace became the first private company to successfully land a craft on the moon. NASA paid the company $101 million to carry 10 experiments to the space rock.
However, just a few days later, Intuitive Machines botched an attempt as its craft unintuitively landed on its side. This is the second time an Intuitive Machines lander has landed sideways.
Turning away from the moon, a SpaceX Starship encountered a “minor setback” as the rocket exploded after reaching space in a test flight. Elon Musk is hoping the Starship can eventually propel us to a Mars landing.
The month ended on a more positive note though as NASA astronauts Suni Williams and Butch Wilmore splashed down off the coast of Florida. This ended a 286 day stay on the International Space Station, which was only intended to be an eight day mission…
Domino’s is feeling stuffed.
Decades after one of the most controversial pizza innovations in history, the world’s largest chain is finally adding stuffed crust to its lineup.
Pizza Hut first introduced the menu item back in 1995, with a TV ad featuring Donald Trump. At the time Domino’s thought it was a gimmick and would cause bottlenecks in the kitchen.
Instead, Pizza Hut sold $300 million in its first year. When Papa John’s eventually added its own version of the cheesy dough, it helped boost sales by nearly 30%.
The move is an attempt to cushion revenue during a sluggish period of growth. Research shows stuffed crust consumers tend to buy pizza more regularly, and spend more money per visit.
Awareness could be the key. Three-quarters of Domino’s customers thought they already offered stuffed crust as an option.
Broad Market Returns
| Asset Class | 1 Month | 3 Month | YTD | 1 Year |
| S&P 500 (VOO) | -5.61% | -4.29% | -4.29% | 8.34% |
| NASDAQ (QQQ) | -7.59% | -8.14% | -8.14% | 6.26% |
| Large Cap Growth (VUG) | -8.48% | -9.53% | -9.53% | 8.27% |
| Large Cap Value (VTV) | -2.46% | 2.63% | 2.63% | 8.56% |
| Small Cap Growth (VBK) | -7.78% | -9.96% | -9.96% | -2.88% |
| Small Cap Value (VBR) | -5.20% | -5.38% | -5.38% | -0.76% |
| Developed International (VEA) | -0.01% | 6.79% | 6.79% | 4.56% |
| Emerging Markets (VWO) | 1.29% | 2.87% | 2.87% | 11.84% |
| REITs (VNQ) | -2.59% | 2.68% | 2.68% | 9.03% |
| Aggregate Bonds (BND) | 0.01% | 2.78% | 2.78% | 4.92% |
| Corporate Bonds (VCIT) | 0.01% | 2.61% | 2.61% | 6.17% |
| High Yield Bonds (JNK) | -1.34% | 0.93% | 0.93% | 6.96% |
| Long Term Treasuries (VGLT) | -0.90% | 4.81% | 4.81% | 1.41% |
| International Bonds (BNDX) | -1.18% | -0.07% | -0.07% | 3.50% |
Market Health Indicator
The Market Health Indicator (MHI) measures market health on a scale of 0 – 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.
Fun Facts
- The International Space Station travels at a speed of about 17,500 miles per hour, orbiting Earth approximately every 90 minutes.
- The largest bowling alley in the world is in Inazawa City, Japan, with 116 consecutive lanes on a single floor.
- The average golf ball has 336 dimples, though the exact number can vary by manufacturer and model.
- Your brain alone accounts for about 20% of your body’s total energy consumption, burning around 400 to 500 calories per day.
– The Aspire Wealth Team
Weekly Wake-Up
