Equity markets remained headline-driven last week.

Trading opened lower after President Trump publicly criticized Federal Reserve Chair Jerome Powell and even floated the idea of dismissing him, a threat that briefly rattled investors before being rescinded. Sentiment improved once reports emerged that U.S.-China negotiators were discussing tariff relief, and momentum built further as members of the “Magnificent Seven” began releasing quarterly results. Adding to the resilience narrative, weekly jobless claims surprised on the upside, signaling that labor-market strength persisted despite policy and geopolitical crosscurrents.

Next week, markets will stay focused on trade headlines and a dense macro calendar. Chief among the releases is the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge; after rising 0.4 percent month-over-month in February 2025—the largest jump since January 2024—the index is forecast to slow to 0.1 percent in March. Personal income and spending figures are also due and are expected to post only modest gains. Meanwhile, earnings season continues: aggregate results have beaten estimates so far, but corporate guidance has remained cautious, leaving forward-looking visibility limited.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.