Weekly Macro Minute

Joe Karr authored this issue’s devotional. He served the Lord for 46 years.

But he said to them, “Do not be alarmed. You seek Jesus of Nazareth, who was crucified. He is risen! He is not here. See the place where they laid Him. But go, tell His disciples — and Peter — that He is going before you into Galilee; there you will see Him, as He said to you.”

Mark 16:6-7 (NKJV)

Many years ago, I asked a professional artist, a friend of mine, to draw a picture of the Lord Jesus’ appearance to Simon Peter on that first Easter Sunday after He had risen from the dead. We know there was a private appearance because Scripture tells us (Luke 24:34, NKJV; 1 Corinthians 15:5, NKJV).

I believe the Lord appeared to Simon Peter to assure him that he was forgiven and restored after denying Jesus three times before the crucifixion. Jesus wanted Peter to understand that truth. The picture my friend drew was powerful: it showed Peter embracing Jesus, tears streaming down his face. You could see the scars in Jesus’ hands from the crucifixion. In the background was an open window, and beyond it, a wind-swept hill with three empty crosses signifying that Jesus had risen from the dead. That image reminds me that Jesus appeared to Peter to restore and forgive him.

My friends, I had that picture framed because it represents a profound truth: whatever situations we face, whatever trials we endure, the risen Christ comes to us. He encourages us, admonishes us and restores us again. Perhaps today you are facing difficulties — marital struggles, physical challenges or financial burdens. Whatever it is, remember this: the Risen Lord is with us to revive us, to restore us and to forgive us.

Thank God we have a risen Savior who loves his people and meets us in our time of need. Praise him for that!

In what practical ways can you live with resurrection hope this week?

Equities pull back as AI and inflation concerns resurface

1. U.S. equities moved lower as investors questioned whether future returns would justify elevated AI-related capital spending and rising oil prices reignited inflation concerns.
2. The S&P 500^® fell 0.6%, while the Russell 2000^® declined 1.1%.
3. Leadership shifted toward defensive and cyclical areas as investors rotated away from crowded AI-related positions.

Earnings remain strong despite market reaction

1. Earnings season continued to exceed expectations, with 86% of reporting S&P 500^® companies beating estimates.
2. Blended earnings growth rose to 37.9%, though much of the strength was aided by a one-time gain at Alphabet.
3. Strong technology earnings failed to lift share prices as investors focused on rising capital-spending commitments and uncertainty around future returns on AI investments.

Yields move higher ahead of Federal Reserve meeting

1. Treasury yields rose across the curve as oil prices climbed and inflation expectations firmed.
2. The 10-year Treasury yield ended the week at 4.68%, while the 2-year rose to 4.33%.
3. Markets continued to price for a higher-for-longer interest rate environment.

Oil prices surge on Middle East escalation

1. WTI crude climbed roughly 10% to nearly $92 per barrel.
2. Escalating tensions in the Middle East and disruptions to shipping through the Strait of Hormuz renewed concerns around global energy supply and inflation pressures.

European equities outperform

1. European stocks posted modest gains despite higher energy costs, supported by a solid start to earnings season.
2. The European Central Bank held rates steady while maintaining flexibility around future policy moves.

Japanese equities continue higher

1. Japanese stocks advanced, supported by continued corporate-governance reforms and shareholder-friendly initiatives.
2. Investor demand remained strong despite ongoing currency weakness.

Yen remains under pressure

1. The Japanese yen stayed near multi-decade lows against the dollar.
2. Interest-rate differentials and fiscal concerns continued to pressure the currency despite intervention warnings.

Chinese equities gain support

1. Chinese stocks moved higher as government stabilization efforts and state-linked buying supported sentiment.
2. Policymakers continued efforts to bolster market confidence amid uneven economic growth

Tariffs return to focus

1. New tariffs ranging from 10% to 12.5% on imports from 60 trading partners took effect Friday.
2. Markets largely absorbed the announcement, though investors continued evaluating potential inflation implications.

Labor market remains resilient

1. Initial jobless claims fell to 187,000, the lowest level since 1969.
2. The data highlighted employers’ continued reluctance to reduce headcount despite slower hiring activity.

Housing shows modest improvement

1. New home sales rose 1.6% in June.
2. Inventory levels remained elevated, while median home prices moved lower from the prior month.