Financial markets ended the first quarter against a backdrop of persistent macro uncertainty, elevated geopolitical risks, and continued debate around inflation, energy prices, private credit, and artificial intelligence. These concerns combined to produce modest declines, with the S&P 500 returning -4.4%. Foreign stocks retained their lead, with the MSCI EAFE Index of developed markets (essentially Europe and Japan) returning -1.2% and Emerging Markets delivering the best performance, with a return of -0.2% (+3.2% excluding China).
Courage is resistance to fear, mastery of fear, not absence of fear. – Mark Twain
1st Quarter 2026 Market Commentary
Financial markets ended the first quarter against a backdrop of persistent macro uncertainty, elevated geopolitical risks, and continued debate around inflation, energy prices, private credit, and artificial intelligence. These concerns combined to produce modest declines, with the S&P 500 returning -4.4%. Foreign stocks retained their lead, with the MSCI EAFE Index of developed markets (essentially Europe and Japan) returning -1.2% and Emerging Markets delivering the best performance, with a return of -0.2% (+3.2% excluding China).
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