Markets pushed lower this week due to possible fears of a slowdown. Will momentum come to a complete halt or are we seeing signs of slower traffic on the horizon?
Monday
S&P 500 0.00% | NASDAQ 0.00%
Markets Closed – Presidents’ Day
Tuesday
S&P 500 0.24% | NASDAQ 0.07%
The S&P500 broke through to an all-time high after a long holiday weekend. Tariffs remain in play, but markets were undeterred as they climbed higher on the day.
Wednesday
S&P 500 0.24% | NASDAQ 0.07%
Headlines revolved around the release of the Federal Reserve (FRB) minutes or a summary of their January meeting. The minutes indicated that they would be cautious in the timing of changing their policy stance. There is still concern of inflationary pressures which the FRB intends to watch closely.
Thursday
S&P 500 -0.43% | NASDAQ -0.47%
The S&P500 gave up previously gained ground on Thursday. The big news surrounded the big-box store, Wal-Mart’s, poor outlook which ignited selling activity throughout the day.
Friday
S&P 500 -1.71% | NASDAQ -2.20%
The selloff continued from Thursday to close out a rough week for markets. News of uncertainty around tariff policy and lower consumer sentiment weighed on the indexes.
Conclusion
S&P 500 -1.66% | NASDAQ -2.51%
Markets took issue with the prospect of slowing growth and the possible risk of higher inflation for longer. The Federal Reserve’s minutes from their January meeting clarified that there is still work to be done on the inflation front and the consistent theme has been whether those figures will see a reprieve from the price pressures dating back to July 2022. Markets have enjoyed a significant level of growth since October 2022, so these week-to-week downturns have become more and more a theme when data points hint at a slowdown. This week’s data was that the consumer may be pinching their proverbial pennies more than they have had the past couple of years. If it is true, then the selloffs are certainly not uncommon but what happens in the next few months of data will help provide more clarity.
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