Following the worst week of 2024, equities staged a small rebound on Monday, while bonds experienced a decline. Domestically, US retail sales surpassed forecasts, with revisions for the previous month also showing upward adjustments. Concerns surrounding the Iran-Israel conflict, which had gripped markets in recent days, have slightly eased.

Investors remain closely attuned to the Federal Reserve's commentary for insights into the trajectory of interest rates. To avoid a three-week losing streak, many market participants will need to look beyond recent suggestions that rate cuts might not materialize until the very end of 2024 due to persistent inflationary pressures.

In the realm of fixed income, yields are reaching their highest levels of 2024, propelled by stronger-than-anticipated economic indicators. The consumer sector continues to thrive, buoyed by the robust tailwind of accommodating financial conditions.

The S&P 500 sits near 5,150 off a few percentage points from all-time highs. In recent weeks, momentum has slowed and many traders are trying to determine if this is a healthy pullback or the start of a short-term downtrend. We are at the start of earnings season, where earnings are expected to grow for the third straight quarter year over year.

We are still seeing an elevated level of short-term rotation in the market. Large-cap growth has made a positive rate of change move. Small caps remain at the bottom of the pile relatively. Communications and Energy are on top sector-wise. Energy, notably, has a negative rate of change decrease. Real Estate and Utilities, interest rate-sensitive sectors, sit at the bottom.