Markets climbed higher this week following President’s Day. Will markets continue to balance risk-on assets in the changing landscape?
Monday
S&P 500 0.00% | NASDAQ 0.00%
Markets Closed in Observance of President’s Day
Tuesday
S&P 500 0.10% | NASDAQ 0.14%
Equity markets ended slightly higher coming out of the long weekend. Volatility measures stabilized later in the day after a rough morning of trading. Markets will be turning their focus to the Personal Consumption Expenditures (PCE) inflation report to be released on Friday.
Wednesday
S&P 500 0.56% | NASDAQ 0.78%
Good news in real estate as housing starts and mortgage applications increased after a 3-week slump. More notably was the announcement that Meta (META) would be using Nvidia’s (NVDA) chips for its data centers. The 2 year and 10-year treasury yields rose on the day.
Thursday
S&P 500 0.28% | NASDAQ 0.31%
Equities fell after a positive start to the week except for energy markets. Oil prices continued to rise as visibility into policy between the U.S. and Iran remains murky. Negotiations are ongoing about Iran’s nuclear program.
Friday
S&P 500 0.69% | NASDAQ 0.90%
Markets popped at the end of the week as a significant ruling by the Supreme Court on tariffs was announced. PCE figures came out higher than expected but did not deter major indexes from climbing higher. Markets are looking at the prospect for growth even if inflation remains stubbornly above target.
Conclusion
S&P 500 1.07% | NASDAQ 1.51%
This week was highlighted by a key court ruling on tariffs, deals in technology and a continued climb for energy. Markets proceeded to go shopping for deals in equities following last week’s losses. Friday’s release of 4th Quarter Gross Domestic Product (GDP) came in much lower than expected. Additionally, they appeared to shake off the disappointing PCE reading on Friday as well. Tariffs will undergo additional scrutiny after the administration announced a new tariff structure in response to the Supreme Court Ruling. There will still be tariffs on goods but on a flat rate basis. Markets cheered the potentially less burdensome impact on corporate balance sheets and positive implications for spending in the interim. Value stocks continue to lead so far this year as investors look to maintain a delicate balance in an ever-changing economic and geopolitical environment.
~ 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.