Archive for February 2024

The S&P 500 and Dow Jones closed at record highs last Friday, ushered in by Nvidia’s impressive earnings report, while economic indicators such as January’s Leading Economic Index reflected a bearish tone ahead and existing home sales demonstrate a slower, more historically normal market. Additionally, Amazon has officially joined the Dow Jones Industrial Average, marking a notable accomplishment for the ecommerce giant. Panning back and looking holistically at the state of the US economy and the Fed’s potential next steps, investors are expecting a rate cut by the June FOMC meeting.

Markets fell last week after a higher-than-expected January CPI report, showing a 3.1% annual inflation rate, triggering a selloff with the S&P 500. The increase was fueled by rising transportation, shelter, and food away from home costs, though energy and used vehicle prices dropped. This unexpected inflationary pressure pushed back expectations for a Federal Reserve rate cut.

Markets saw large price swings this week, starting with a sharp selloff in equities after Fed Chair Powell indicated that a rate cut in March was not their base case scenario. Despite this, markets rebounded later in the week, driven by a robust January jobs report that exceeded expectations. The labor market’s strength, coupled with positive consumer confidence, coincide with the realities of a delayed Fed rate cut. Q4 earnings reports showed better earnings growth this week, as Meta’s impressive Q4 performance was surprisingly marked by a new dividend and share buyback plan, leading to a 20% increase in its stock on Friday.

Markets saw large price swings this week, starting with a sharp selloff in equities after Fed Chair Powell indicated that a rate cut in March was not their base case scenario. Despite this, markets rebounded later in the week, driven by a robust January jobs report that exceeded expectations. The labor market’s strength, coupled with positive consumer confidence, coincide with the realities of a delayed Fed rate cut. Q4 earnings reports showed better earnings growth this week, as Meta’s impressive Q4 performance was surprisingly marked by a new dividend and share buyback plan, leading to a 20% increase in its stock on Friday.