The Week on Wall Street
Stocks advanced last week despite some intra-week volatility as investors showed concern about the economy’s strength.
The Standard & Poor’s 500 Index gained 1.47 percent, while the Nasdaq Composite Index picked up 2.58 percent. The Dow Jones Industrial Average added 0.55 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, tacked on 2.53 percent.1,2
The Fed Is in “No Hurry”
Stocks opened the week higher, quickly discounting news that the White House would impose 25 percent tariffs on all steel and aluminum imports. Tuesday was a volatility session, punctuated by comments from Fed Chair Powell, who told lawmakers the central bank doesn’t “need to be in a hurry” to lower interior rates further.3,4
Stocks opened lower Wednesday after a warmer-than-expected update on consumer prices. But stocks showed some resilience and rallied throughout the day. The Nasdaq managed to claw back its losses before Wednesday’s close.5
On Thursday, the White House announced a plan for reciprocal tariffs (levies on goods imported into the U.S. from countries that impose tariffs on U.S.-exported goods). But markets rallied on news that the administration would pause tariffs until they determine how much to levy on each country. Stocks took a breather on Friday, shrugging off a weaker-than-expected retail sales report.
The S&P ended shy of a record close, and the Nasdaq finished the week above the 20,000 mark.6
Inflation in Focus
The Consumer Price Index report showed prices rose 0.5 percent in January–slightly hotter than expected. Shelter costs remained elevated, increasing 0.4 percent for the month.
Core CPI, which excludes volatile food and energy prices, was also above forecast. Food prices rose 0.4 percent, pushed by a 15.2 percent increase in egg prices related to ongoing issues forcing farmers to cull chicken flocks. Energy prices picked up 1.1 percent as gasoline prices rose.7,8
Weekly Riddle
I’m comprised of solid ground, and yet I see water all around. What exactly am I?
Last week’s riddle: Each morning, I show up at your feet, yet at midday, I nearly retreat. No matter how fast you move, I follow. What am I?
Answer: Your shadow.
John Dombroski Jr. may be reached at (480) 991-1055 or [email protected]
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