Digest | 28 March 2025
- Edward von der Schmidt
- Mar 28
- 4 min read
Updated: Apr 21
Declining sentiment and resurgent inflation concerns amid tariff-driven uncertainty weighed on equities as Big Tech and auto-adjacent stocks fell. The prevailing risk-off tone drove a 12bp rally in 10y Treasuries (to 4.25%) while gold moved to new highs. The final University of Michigan survey of consumers for March reinforced a precipitous decline in the near-term economic outlook and a steady rise in inflation expectations. Meanwhile, February personal income and spending figures showed tepid real consumption growth accompanied by elevated core inflation. With the Fed's easing path complicated by price pressures, anticipated economic slowing has aggravated stagflation fears that have yet to materialize in hard data.