Markets ended the week lower, as further reshuffling of White House staff and trade jitters appeared to take their toll. The S&P 500 has expanded or declined by more than 1% in 9 out of the 11 weeks, YTD, as compared to 13 total such weeks in all of 2017. The Dow Jones Industrial Average (DJIA) saw a move greater than 0.5% every day last week, with sentiment indicators ranging from cautious to enthusiastic, all of which points to the likelihood that volatility will be the norm, rather than the exception, for 2018.

President Trump fired Secretary of State Rex Tillerson on Tuesday, naming Central Intelligence Agency head Mike Pompeo to lead the State Department. Trump and Tillerson’s relationship had been strained over what appeared to be differing approaches to Korea and Russia. CIA veteran Gina Haspel will replace Pompeo, the first woman to head the agency. Additionally, the President appointed Lawrence Kudlow to serve as chief economic advisor, following Gary Cohn’s departure.

Most economists don’t expect that President Trump’s proposed 25% tariff on imported steel and 10% tariff on imported aluminum will reduce U.S. employment by much, but do worry that foreign-trade disputes could escalate. The EU, UK, and Japan sought exemptions, while the administration began preparing measures against China.

This week, the Federal Open Market Committee was scheduled to meet beginning on Tuesday. On Wednesday, the Fed raised short-term interest rates. Beyond the rate hike itself, investors will be focused on new Chairman Jerome Powell’s first press release to glean information regarding the number of rate hikes expected for the remainder of the year, as well as the pace of these hikes.