This Weekly Financial Markets Update reviews the top market headlines: Job Market Bounces Back in March, Fed Chair Counsels Patience on Rates, M&A Megadeals Spike in Q1
  • The U.S. economy added 178,000 jobs in March
  • The current federal funds rate target range is 3.50%-3.75%
  • 22 M&A deals of more than $10 billion were announced in Q1

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Top Three Market Headlines

Job Market Bounces Back in March: The U.S. Department of Labor reported Friday that the U.S. economy gained 178,000 jobs in March, considerably higher than economists' consensus expectation of 59,000 additions. March's number, the highest monthly gain in more than a year, follows a disappointing result in February, when 133,000 jobs were lost. Employment in health care, construction, and transportation led the charge in March, contributing 76,000, 26,000, and 21,000 gains, respectfully. Meanwhile, employment in federal government continued to decline, with 18,000 job losses in March. Along with the job gains, the unemployment rate ticked down to 4.3% from 4.4% during the month.

Fed Chair Counsels Patience on Rates: In public comments last week, Federal Reserve Chair Jerome Powell said he doesn't believe the central bank needs to raise interest rates at this time despite the recent rise in energy prices resulting from the Iran conflict. Noting that interest rate hikes have a lagged impact on the economy, he supports looking beyond short-term moves in energy prices and focusing on the Fed's long-term goals of stable prices and low unemployment. Fed governors last month voted to keep the federal funds rate target range unchanged at 3.50%-3.75%, which the Chair stated is "a good place" to wait as current events play out.

M&A Megadeals Spike in Q1: Large corporate mergers and acquisitions ("M&A") transactions had their strongest quarterly showing ever in Q1 of 2026, notwithstanding rising oil prices and public market stock declines. A total of 22 transactions valued at $10 billion or more were announced globally, surpassing the previous record of 21 such deals in the fourth quarter of 2015. Recent transactions grabbing headlines include Unilever's $65 billion deal with McCormick and Amazon's $50 billion equity investment in OpenAI. At the same time, market participants noted that deal processes have slowed in recent weeks amid rising uncertainty in the macroeconomic environment.

As of April 3, 2026 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 2.95% -1.68% -1.68% 24.82%
S&P 500 3.38% -3.53% -3.53% 23.52%
Russell 2000 3.34% 2.26% 2.26% 34.18%
MSCI EAFE 3.04% 1.60% 1.60% 24.13%
MSCI Emerging Markets 0.33% 3.00% 3.00% 33.43%
FTSE NAREIT Equity 3.50% 6.53% 6.53% 12.58%
Bloomberg Commodity 2.34% 26.26% 26.26% 36.92%
Bloomberg U.S. Aggregate 0.75% -0.04% -0.04% 3.54%

US Dep't of Labor 4/3/2026, CNBC 3/30/2025, WSJ 3/31/2026. Data from Morningstar Direct and FactSet. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA 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. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.