A Macro Pilgrim's Ledger - The Santiago Way

A way weekly report by Brent Johnson

“Walking the path of global markets, one step at a time.”

Markets ended the week lower, breaking their recent streak of gains as investors weighed the Federal Reserve’s latest rate cut against softening economic momentum.

The S&P 500 declined 1.6% for the week, while the Nasdaq Composite fell roughly 3%, reflecting weakness in technology and rate-sensitive sectors.

The ongoing government shutdown continued to limit the flow of official data, leaving traders to rely on private and regional reports for guidance.

Those indicators painted a mixed picture: manufacturing contracted again, hiring slowed, and services showed only modest resilience.

Together, the data suggested that policy easing has yet to spark a clear trend.

Bond yields edged lower as investors sought safety, while equity sentiment turned cautious. Positioning thinned and volatility remained contained.

Until the full slate of economic data resumes, markets will continue to move on interpretation rather than confirmation.

“Uncertainty is the new normal for global markets” — Kristalina Georgieva, Managing Director of the International Monetary Fund.