Weekly Macro Minute

Rev. David M. Peterson, D.Min., authored this issue’s devotional. He served the Lord alongside his wife, Irma, for 30 years.

I am crucified with Christ: nevertheless I live; yet not I, but Christ liveth in me: and the life which I now live in the flesh I live by the faith of the Son of God, who loved me, and gave himself for me. Galatians 2:20 (KJV)

In every season of life, it is good to pause and remember the depth of Christ’s love for us and his sacrifice on the cross. Consider the following reasons why Christ endured the cross and what his sacrifice accomplished.

• To Show the Righteousness of God to Us

Jesus Christ brought glory to God in doing the Father’s will. He was the only one who could satisfy the righteousness and holiness of God, because he was righteous. God the Father will not accept any other sacrifice.

• To Pay a Ransom for Us

Sin must be punished. Christ paid for our punishment on the cross. He paid the price of our debt, a debt he did not owe. 1 Timothy 2:6 (KJV) says, “Who gave himself a ransom for all.”

• To Rescue Us from this World

Our only hope of rescue from this evil world is Jesus Christ. In Galatians 1:4-5 (KJV) we read: “Who gave himself for our sins, that he might deliver us from this present evil world, according to the will of God and our Father; to whom be glory for ever and ever. Amen.”

• To Reconcile Us to Himself

The only way we can be reconciled to God is through what Jesus Christ did for us on the cross. 1 Timothy 2:5 (KJV) says, “For there is one God, and one mediator between God and men, the man Christ Jesus.” 2 Corinthians 5:19 (KJV) says, “To wit, that God was in Christ, reconciling the world unto Himself…

• What Jesus Gave for Us:

He gave his:

• Head: to wear a crown of thorns.
• Eyes: to weep for us.
• Cheeks: to be smitten.
• Shoulders: to bear the cross.
• Back: to be beaten.
• Side: to be stuck with a spear.
• Hands and Feet: to be nailed on the cross.
• Blood: to be sacrificed for our sins.

Christ gave himself for us, and we are waiting for him to come for us! Spend a moment in prayer thanking God for sacrificing his son and reflecting on the implications of the cross for your life.

Small caps outperform as AI rotation continues

• U.S. equities were mixed as investors continued rotating away from AI-related and large-cap technology stocks.
• The S&P 500^® declined 0.5%, while the Russell 2000^® gained 2.0%.
• Broader market participation improved as value stocks outperformed growth for a third consecutive week.

AI financing concerns remain in focus

• Technology shares weakened as companies provided greater visibility into the significant capital required to support AI infrastructure.
• Corporate credit spreads continued to widen, particularly among AI-sensitive issuers, as heavy financing needs increased competition for capital.

Treasury yields retreat

• Treasury yields moved lower as investors shifted toward bonds during the technology selloff.
• The 10-year Treasury yield fell below 5% for the first time in roughly a month, ending the week near 4.99%.
• Longer-term yields have also retreated meaningfully from recent peaks.

Oil surges on renewed Middle East tensions

• Oil prices climbed sharply as attacks in the Strait of Hormuz and continued geopolitical tensions renewed supply concerns.
• Rising energy prices added to inflation concerns and weighed on market sentiment late in the week.

European equities decline

• European stocks moved lower as rising oil prices, renewed inflation concerns and political uncertainty weighed on sentiment.
• Fiscal and political concerns remained particularly elevated in France.

Japanese equities pressured by AI concerns

• Japanese stocks declined sharply as investors questioned the financing required to support continued AI and data-center investment.
• Technology-related companies were among the week's largest decliners.

Chinese equities move lower

• Chinese stocks declined as weakness in internet and biotechnology companies weighed on sentiment.
• Potential U.S. restrictions on biotechnology investments added another source of uncertainty.

Business activity remains strong

• U.S. business activity continued expanding at a strong pace, supported by healthy manufacturing and services activity.
• Businesses reported their sharpest increase in selling prices since 2022, signaling persistent inflation pressures.

Housing weakness deepens

• Builder confidence fell to its lowest level since 2012 as elevated mortgage rates and higher construction costs weighed on the industry.
• Pending home sales declined sharply and reached their lowest level since the series began.

Labor market remains stable

• Initial jobless claims fell to 194,000, the lowest level since July.
• Continuing claims edged higher, but overall layoffs remained contained.

Consumer sentiment remains subdued

• Consumer sentiment remained historically weak in October.
• Both near-term and longer-term inflation expectations increased, reflecting continued household concerns about elevated prices.