WEEKLY MARKET RECAP – MARCH 27, 2026

Early-week gains in U.S. equities quickly faded, and sell-offs on Thursday and Friday left major indexes lower for a fifth consecutive week. The NASDAQ fell 3.2%, the S&P 500 declined 2.1%, and the Dow slipped 0.9%.

The NASDAQ officially entered correction territory on Thursday, closing more than 10% below its record high from about five months earlier. The Dow followed on Friday, while the S&P 500 moved closer to that threshold, ending the week 8.7% below its late-January peak.

Energy stocks continued to benefit from elevated oil and natural gas prices. The S&P 500 energy sector rose more than 6% for the week and has gained nearly 13% since March 1, making it the only sector in positive territory over that span. Year to date, energy is up 41%.

Market volatility has weighed more heavily on growth stocks, reversing their leadership from 2025. A growth benchmark dropped 3.4% for the week, compared with a 0.5% decline for its value counterpart. For the year, growth is down nearly 13%, while value has posted a slight gain.

Treasury prices declined for a fourth straight week as expectations for future rate cuts diminished. The 10-year Treasury yield rose to 4.43%, its highest level in more than eight months. The 2-year yield briefly moved above 4.00% on Friday before closing at 3.91%, slightly higher on the week.

Small-cap stocks outperformed large caps, further widening their year-to-date lead. The Russell 2000 gained 0.5% for the week, while the Russell 1000 fell 2.0%.

Consumer sentiment weakened. The University of Michigan’s index dropped to 53.3 in March from 56.6 in February, below economists’ expectations for a more modest decline to around 54.0.

Looking ahead, Friday’s labor market report will indicate whether February’s disappointing employment data carried into March. In February, the economy lost 92,000 jobs, marking the third decline in five months. The report is scheduled for release on Good Friday, when U.S. financial markets will be closed.