Markets picked up speed in a busy week for the country. Are indexes reaccelerating or will they start letting off the throttle?
Monday
S&P 500 0.00% | NASDAQ 0.00%
Markets Closed – Martin Luther King Jr. Day
Tuesday
S&P 500 0.88% | NASDAQ 0.64%
Markets started the week trading higher after a Monday off for MLK Jr. Day and the Inauguration. The new administration comes in with its policy making agenda which will be closely watched in the first 100 days of the President’s 2nd term. Inflation, revenue and energy were some highlights in the President’s address.
Wednesday
S&P 500 0.61% | NASDAQ 1.28%
Markets continued their climb mid-week as the prospect of lower regulatory policies from the current administration could spur on business growth. The jump was noteworthy, again, in the AI fueled rallies occurring in the NASDAQ. Earnings season is upon us and many reports so far have come out strong for Q4.
Thursday
S&P 500 0.53% | NASDAQ 0.22%
The S&P 500 notched another all-time high on the day on the back of strong corporate earnings. Continuing Jobless claims rose higher than expected which was partly attributable to continued blazes across California.
Friday
S&P 500-0.29% | NASDAQ -0.50%
Markets eased off the throttle to close out the week but landed in positive territory. Consumer sentiment edged lower while inflation expectations over the next year moved higher which could be a concern for the U.S. Consumer moving forward.
Conclusion
S&P 500 1.74% | NASDAQ 1.65%
The markets saw new highs achieved during the week with attention primarily focused on the direction of the new administration. Confirmation hearings have commenced which could dictate National Security Measures, Defense, Immigration Reform, and, importantly, Economic policy making. With all eyes fixed on the new administrations Cabinet, more clarity will come within the first 100 days. As hopes for a strong economy continue to remain strong, there are questions surrounding whether there is a concentration in a handful of companies across portfolios. Value Stocks have taken the lead in first 3 weeks of the year which could be an indicator of broad growth compared to growth just in technology and communication companies. Aside from the powers that be, the Federal Reserve will be sitting down next week to determine direction of monetary policy and how long they’ll continue to be hawkish (keep borrowing rates higher). The economic engine could begin revving back up but, for now, it would be prudent to proceed with caution if there are speed bumps up ahead.
~ Your Future… Our Services… Together~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.