This Weekly Financial Markets Update reviews the top market headlines: Mixed February Jobs Report, Surveys Signal Continued Expansion, Bond Yields Rise Across the Eurozone
  • The U.S. economy added 151,000 jobs in February
  • The ISM Manufacturing Index registered 50.3% in February
  • The German 10-year bond yield hit a 17-month high of 2.91%

Top Three Market Headlines

Mixed February Jobs Report: The U.S. Department of Labor reported last week that the U.S. economy added 151,000 jobs in February. While this was less than economists' consensus estimate of 170,000, it was higher than the tally of 125,000 jobs added in January. Sectors seeing the most job growth in February included health care, financial activities, and transportation & warehousing, while federal government employment declined. During the month, the unemployment rate ticked up to 4.1% versus 4.0% in January, and average hourly earnings rose at a 4.0% annual pace, slightly higher than the previous month.

Surveys Signal Continued Expansion: The Institute for Supply Management (ISM) reported that its ISM Manufacturing Index registered 50.3% in February, down slightly from 50.9% in January, caused by a drop in new export orders and slower deliveries from suppliers. However, this marked the second straight month the index was above the 50% threshold that differentiates expansion of business activity from contraction. In tandem, ISM also reported that activity in the services sector expanded for the eighth consecutive month with a reading of 53.5% in February, a marginal improvement from 52.8% registered in January.

Bond Yields Rise Across the Eurozone: Sovereign bonds yields surged across Europe last week as investors reacted to the prospect of higher defense and infrastructure spending. In Germany, a proposed spending plan calling for an increase in the German defense budget and a €500 billion investment in infrastructure triggered a rise of nearly one-half of a percentage point in the German 10-year bond yield to 2.91%, its highest level since October 2023. Comparable yields jumped by more than a quarter percentage point in France, Italy, and Spain as well. In response, the value of the euro appreciated by nearly 4% relative to the U.S. dollar during the week, hitting a four-month high.

As of March 7, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -1.22% 1.48% 1.48% 11.87%
S&P 500 -3.06% -1.66% -1.66% 13.38%
Russell 2000 -4.01% -6.76% -6.76% 0.91%
MSCI EAFE 3.11% 10.64% 10.64% 9.20%
MSCI Emerging Markets 2.89% 5.23% 5.23% 12.19%
FTSE NAREIT Equity -2.01% 2.58% 2.58% 12.51%
Bloomberg Commodity 2.07% 6.94% 6.94% 11.96%
Bloomberg U.S. Aggregate -0.58% 2.15% 2.15% 4.08%

US Dept. of Labor, 3/7/2025, Institute for Supply Management 3/5/2025, Bloomberg 3/5/2025, WSJ 3/7/2025. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your Gallagher Fiduciary Advisors consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.