The heaviness of the US China trade rumble

Rising bond yields weighed on stocks throughout the week, as economic data pointed toward a potential need for further rate hikes. China’s flailing economic recovery and warnings of potential bank downgrades added to the market’s woes.

Stocks are climbing up again as this morning’s lighter-than-expected CPI print bolsters spirits following yesterday’s optimism sparked by tariff reprieves between Beijing and Washington.

Growth substantially outperformed value as market priorities shifted from interest rate sensitivity to economic growth sensitivity, leading to a high level of performance dispersion within equity markets.