Week Ending March 27, 2026
Market Volatility in Perspective
Markets have been anything but quiet lately — but history offers some reassurance. Since 1950, the S&P 500 has experienced pullbacks of 5% or more with regularity, and bear markets (drawdowns of 20%+) have occurred more often than many investors may recall. What’s equally notable: the long-term trend has still pointed higher. Periods of decline have historically given way to recovery, even if the timing has never been predictable.
The takeaway isn’t that volatility is painless — it’s that it’s normal. Keeping that historical context in mind can help frame expectations and maintain perspective when markets get uncomfortable.
What to Do When Markets Drop
A market downturn isn’t just something to weather — it can also be a window of opportunity. Our recession and market correction checklist walks through the key issues to address when valuations are low, including Roth conversion strategies, gifting opportunities, and cash flow management.
SOURCE: fpPathfinder
Equities
- S&P 500 fell 2%+ — fifth straight week of losses — as geopolitical tensions and weakening consumer sentiment pushed investors out of growth names
- Communication Services was the week’s worst sector (–7%+); Energy the best (+6%) on elevated oil prices tied to the U.S.-Iran conflict
- Mid- and small-caps edged higher; value continues to outperform growth YTD
- Developed international flat; emerging markets lagged
Bonds
- Bonds declined, with longer-duration issues hit hardest; short-term government and corporate bonds finished roughly flat
- 10-year Treasury yield rose to 4.44% (up sharply from sub-4.0% in February); 2-year held at 3.88%, widening the 2-10 spread to 56 bps
- IG corporate yields: 5.28% | High-yield: 7.82%
Macro
- UMich consumer sentiment fell to 53.3 in March (est. 54.0; prior 56.6), with 1-year inflation expectations jumping to 3.8% — the largest monthly spike since April 2025
- S&P Global composite PMI slipped to 51.4, an 11-month low, driven by a softening services sector; manufacturing held up with new orders accelerating
- Stagflation risk is rising: input costs and selling prices are climbing at multi-year highs, with CPI potentially re-accelerating toward 4%
(as of Monday’s Market Opening)
| Total Return (1D) | Total Return (1W) | Total Return (MTD) | Total Return (QTD) | Total Return (YTD) | |
| S&P 500 | 0.56% | -2.68% | -6.90% | -6.44% | -6.44% |
| Dow Jones Industrial Average | 0.94% | -1.33% | -6.91% | -5.14% | -5.14% |
| NASDAQ | 0.20% | -4.36% | -7.40% | -9.69% | -9.69% |
| NASDAQ 100 | 0.33% | -4.05% | -7.02% | -8.08% | -8.08% |
| Russell 1000 | 0.49% | -1.49% | -6.85% | -6.14% | -6.14% |
| Russell 2000 | -0.19% | 0.17% | -7.02% | -1.26% | -1.26% |
| Russell 3000 | 0.44% | -1.44% | -6.84% | -5.93% | -5.93% |
| ACWI | 0.57% | -0.90% | -8.19% | -4.37% | -4.37% |
Disclosures
- Wealth Mechanics™ is a registered trademark of Cestia Wealth Management. Unauthorized use of the trademark, including but not limited to commercial use, reproduction, or imitation without explicit written permission from Cestia Wealth Management, is strictly prohibited.
- Market commentary provided by NewEdge Advisors
- Charts concerning market data are provided by Exhibit A.
- Guides and other downloadable firm material respective to financial planning processes and data are provided and powered by fpPathfinder.
- Advisory services offered through NewEdge Advisors, LLC, a registered investment adviser. Securities offered through NewEdge Securities, LLC. Member FINRA/SIPC. NewEdge Advisors, LLC and NewEdge Securities, LLC are wholly owned subsidiaries of NewEdge Capital Group, LLC.
- Cestia Wealth Management is not a legal tax professional. We offer tax gap analysis for clients who desire to have a comprehensive financial plan, which requires in-depth tax strategy and planning as a distinct part of the overall customized solution. Please consult your tax professional on all matters addressed in this report.
- Information about annuities are not to be considered a recommendation. The information provided should not considered a recommendation to purchase or sell any particular security.
- Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.
