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The rise in long-term interest rates weighed on stocks last week. The Dow Jones Industrial Average slipped 0.46 percent, the S&P 500 Index 0.77 percent, the Nasdaq 0.79 percent and the Russell 2000 Index 2.77 percent.

The 10-year bond yield closed at 1.73 percent, up from 1.62 percent last week. The move was driven by dovish comments by Federal Reserve Chairman Powell following an uneventful FOMC meeting. Additionally, the Fed surprised markets by not extending a supplementary leverage ratio that allowed banks to hold more treasuries without reserve backing. Analysts expected the Fed would extend the rule, in part to slow the rise in long-term bonds. Instead, the Fed focused on providing more short-term liquidity. Moreover, interest rates didn’t spike on Friday following the news, indicating banks either plan on holding their treasuries or were already prepared for the rule change.

Bonds were down across the board with rates rising. iShares iBoxx Investment Grade Corporate Bond (LQD) declined 0.06 percent, iShares iBoxx High Yield Corporate Bond (HYG) 0.49 percent and iShares 20+ Year Treasury (TLT) 0.98 percent.

FedEx Corp. (FDX) shares surged 6.10 percent on Friday to close at $279.58 following a positive earnings report. They indicated demand for logistics and delivery services will maintain its elevated levels going forward.

Royal Caribbean Cruises (RCL) shares climbed up 2.61 Friday on the news of its plans to resume cruising operations out of the Bahamas to the Caribbean starting again in June. The company is still waiting for Centers for Disease Control and Prevention approval to resume its cruising operations again out of the U.S.

SPDR Communication Services (XLC) gained 0.96 percent on the week. An 8.07-percent rally in Facebook (FB) helped lift the sector. SPDR Healthcare (XLV) gained 0.46 percent. SPDR Energy (XLE) was the weakest sector after crude oil fell to $61.44. XLE lost 7.54 percent.

Economic data was strong last week. The Empire State index of manufacturing activity showed the New York Fed’s region was humming in March. The Philly Fed index more than doubled forecasts and hit a near 50-year high as prices surged the fastest since the Arab oil embargo of 1973.

The National Association of Homebuilders said its homebuilder confidence index fell to 82 in March. This is still well ahead of prior year levels and builders remain highly confident, but rising lumber prices are cutting into profits. Building permits and housing starts increased at an annualized pace of 1.68 million and 1.42 million, respectively, in February.

The U.S. dollar index spot closed up slightly by 0.06 percent on Friday at 91.92.

After a 7 percent slide for the previous day, Friday’s prices increased up to 2.9 percent at $61.72 a barrel for West Texas Intermediate crude oil and 2.6 percent for Brent crude oil at $64.95 a barrel. This was the largest daily increase for West Texas Intermediate crude oil prices in over two weeks.

U.S. markets closed higher on Monday as investors put stimulus checks into the stock market. The Nasdaq led with an increase of 1.05 percent, the S&P 500 Index gained 0.65 percent, the Dow Jones Industrial Average 0.53 percent and the Russell 2000 Index 0.31 percent.

SPDR Consumer Discretionary (XLY) climbed 1.34 percent, SPDR Utilities (XLU) 1.28 percent and SPDR Technology (XLK) 1.07 percent.

Investors opted for high-quality names on Monday. iShares Edge MSCI Minimum Volatility USA (USMV) hit a new all-time high after rising 0.70 percent. Vanguard Dividend Appreciation (VIG) also hit a new all-time high after rising 0.57 percent on the day.

The Empire state index, a measure of manufacturing activity in the New York Fed’s region, jumped to 15.0 in March. That beat expectations and was well ahead of the prior month’s 12.1 reading.

Retail sales are the big economic data point this week. Economists forecast a 0.1 percent decline in February sales, with sales ex-autos rising 0.2 percent.

The National Association of Homebuilders will report its homebuilder confidence index Tuesday. Analysts think rising lumber prices, making new all-time highs by the day, will probably crimp confidence from 84 in February to 83 in March. Building permits and housing starts for February are also out this week.

SPDR Energy (XLE) dipped 1.14 percent as crude oil fell on the day. New lockdowns in Europe revived concerns about demand. Shares remain near 52-week highs though. XLE has risen more than 100 percent since early November.

The U.S. Dollar Index gained ground on Monday, rising 0.20 percent. Data from the U.S. government showed foreigners started buying U.S. stocks and bonds in January. China also purchased treasuries for the third straight month after selling for most of 2020. iShares MSCI Emerging Markets (EEM) added 0.24 percent helped by the technology rally boosting Chinese tech stocks. iShares MSCI EAFE (EFA) gained only 0.08 percent as lockdown concerns weighed on investors’ minds.