Robertson Stephens Weekly Commentary – February 24, 2025

Was last Friday’s US Purchasing Managers Index for Services the proverbial shot across the bow? It was certainly an attention-grabber, coming in below expectations and indicating the first monthly contraction in the service sector in two years. The S&P 500 hovered near its all-time highs, while the bond market ended the week with gains (price up / Yield down) as weaker-than-expected retail sales rekindled hopes for Federal Reserve rate cuts. A rally in Treasuries drove the 10-Year Yield below 4.5%, marking its fifth consecutive week of gains—the longest streak since 2021. On the wealth planning front, we recommend that you review your wealth plan amidst current market jitters, and we provide you with a tax legislation update.