Small Caps Fall the Least

Despite a strong 1.85% S&P 500 finish on Friday, the benchmark index ended fractionally lower last week, capping a fifth straight week with less than a 1% change. Technology stocks outperformed with the Nasdaq Composite ending modestly positive. Following a 0.25% Fed Funds rate hike on Wednesday to 5.00%-5.25% (its tenth hike since March 2022), the bullish view centered on indications for a June rate pause, resilient labor markets, and somewhat diminished concerns around regional banks.