Small Caps Outperform

Equities slipped on Friday amidst an abrupt but temporary halt to debt-ceiling negotiations. Markets were still driven higher by dovish comments from the Federal Reserve. Fed Chairman Powell commented that interest rates may not have to rise as much as earlier thought to quell inflation. The S&P 500 and Nasdaq ended the week with their strongest gains since early March as investors welcomed pledges from President Biden and Congressional leaders that a U.S. debt default is out of the question.