First Quarter Commentary

• U.S. equity markets faced heightened volatility in the quarter as early strength gave way to a sharp risk-off move amid rising geopolitical tensions and energy-related inflation concerns. Losses were concentrated among growth-oriented equities. Large-cap equities, represented by the S&P 500, fell 4.3%, while the“Magnificent 7” lost 12.3%. Mid-cap & small-cap equities fared better, as the Russell 2500 returned 2.0% for the quarter, while the Russell 2000 finished the quarter up 0.9%.
• International developed and emerging markets faced similar pressures, finishing the quarter down modestly. More attractive valuations and diversified sector exposure helped temper drawdowns, though performance was constrained by a stronger U.S. dollar and higher energy prices. The MSCI EAFE Index lost 1.2% for the quarter, outpacing the S&P 500. Emerging markets securities performed similarly, with the MSCI EM Index remaining relatively flat, losing 0.2%.
• In the first quarter, the U.S. Federal Reserve maintained the federal funds rate at a target range of 3.50%-3.75%. Chair Powell continued to emphasize the Fed’s focus on elevated downside risks to the labor market, while also acknowledging the uncertainty around elevated energy prices and other impacts from the conflict in Iran. Current FOMC projections indicate the Fed could implement one 25 basis point cut in 2026, though FOMC members remain divided amidst ongoing economic and geopolitical uncertainty.
• During the quarter, the yield curve generally shifted higher, with intermediate rates rising more than longer-dated maturities, driven by energy-related inflation concerns.

To view the first quarter reports, click on the links below: 

• 1Q26 Global Positioning Statement
• 1Q26 Global Equity Review
• 1Q26 Taxable Fixed Income Review
• 1Q26 Tax Exempt Fixed Income Review
• 1Q26 Real Assets Review
• 1Q26 Private Equity Review
• 1Q26 Private Credit Review