Investors are embracing an extended three-day weekend after last week’s spree of events. To recap, here are the key events that took place last week: CPI and PPI Data: Inflation on both the consumer and producer ends ticked up in January, with CPI at 3% and PPI at 3.5%. This was the first time CPI hit 3% in seven months, sparking concerns that progress toward the 2% target is off track. Many blame the sharp rise in egg prices for the uptick in inflation, but even core inflation, which excludes volatile items like food and energy, surged 0.4% month over month. The data further increased uncertainty about interest rate cuts this year. On the subject of interest rates, several Federal...
Weekly Stock Market Update & SPY Technical Analysis Investors are gearing up for a highly eventful week ahead, filled with key economic data and updates from Federal Reserve officials. Several Fed members will deliver speeches and share their latest views on economic activity. More importantly, Fed Chairman Jerome Powell is set to testify before Congress in a two day event on Tuesday and Wednesday, his first appearance since July 2024. Markets often experience heightened volatility during live speeches, so stay vigilant and be prepared for some uncertainty. Inflation data will also be a major focus this week, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) set for release. Inflation has been the biggest challenge for the...
Markets Begin February Amid Lingering January Uncertainty As the calendar turns to a new month, markets remain focused on the events of January. From a new president taking office to mixed economic data, investors are still seeking clarity on what February might bring. Despite last month’s volatility, the S&P 500 managed to post a 2.93% gain, outperforming the historical January average return of 0.82%. Recap of Last Week: Federal Reserve Decision: The Fed kept interest rates unchanged, emphasizing inflation risks resurfacing on the horizon. PCE Inflation Report: December’s 2.6% YoY inflation reading remains above the Fed’s 2% target, reinforcing concerns about future rate policy. Tech Earnings: Meta, Apple, Tesla, and Microsoft all reported earnings, but their stock movements remained largely...
Weekly Stock Market Update & SPY Technical Analysis Investors are bracing for a plethora of key economic updates and earnings reports this week, which may set the tone for market performance in February. The most important event this week will be the Federal Reserve’s FOMC meeting, where an update on monetary policy will be provided, including a decision on whether to continue the cycle of interest rate cuts. This decision will largely depend on inflation data, which has been promising over the past twelve months. However, a recent uptick in prices suggests that the Fed may hold off on further rate cuts to avoid exacerbating inflation risks. While the Fed has long maintained that it operates independently of political...
Weekly Stock Market Update & SPY Technical Analysis This week marks a major turning point in U.S. politics as the new Trump administration prepares to take office. Investors are eager to see whether the “Trump Pump,” which occurred following Trump’s election in November, will be reignited after his inauguration this week. However, investors will need to exercise patience, as markets will be closed on Monday in observance of Martin Luther King Jr. Day. Trading will resume on Tuesday. The transition of power doesn’t typically have an immediate impact on markets, but Trump has already been vocal about his plans to ease regulations and implement tariffs. During his first term, the president was widely seen as being good for business,...
