The February jobs report showed further signs of labor market softening, with the economy shedding 92,000 jobs and unemployment rising from 4.3% to 4.4%. Nine of eleven sectors posted job losses, as the figure fell well short of expectations for a gain of 55,000 jobs.

The Federal Reserve cut interest rates an additional 0.25% in December, bringing the target range to 3.5% - 3.75%. Rates are expected to remain between the 3-4% range through 2026 meaning few to no cuts are currently priced in.

Markets continue to make gains following the April lows. International equities continue to outperform year-to-date, supported by the weakening of the dollar.

International markets have provided the highest returns this year, with the MSCI International Index gaining 19.46% and the MSCI Emerging Index up 15.57%. Portfolios that were globally diversified experienced less volatility and higher returns YTD.

International markets and bonds have provided the most stability this quarter, with the MSCI International Index gaining 6.35% and bond prices rising due to falling interest rates. Portfolios that are diversified across asset classes and geographies have held up the best.