Our Senior Portfolio Manager and Head of Global Sustainable Investing, Kris Nelson, sees markets balancing several competing forces this week, from renewed oil-price volatility to softer labor data and increasingly demanding expectations around AI earnings.

Equity markets generally moved lower as rising yields and energy prices created a more challenging backdrop. Higher yields can be particularly difficult for long-duration equities, where a greater share of expected cash flows sits further into the future.

Equities extend gains as earnings and semiconductors lead markets higher. Consumer confidence remains subdued despite economic resilience. Inflation is easing gradually but remains above the Fed’s targey.