Last week, I did not post a market update because I visited Nicaragua with my family. This experience left us with a deep appreciation for the Nicaraguans we met and a renewed awareness of the vast opportunities we are blessed with in the United States of America.
Turning to the US economy, we observed a decline in January job openings. February employment data showed that nonfarm payrolls increased by 275K, average hourly earnings slightly increased by 0.1%, and the unemployment rate rose from 3.7% to 3.9%. Last week’s job data shows a continued normalization in the labor markets. A cooling labor market should give the Fed reason to cut rates by June.
Inflation data will be closely watched this week, with the Consumer Price Index (CPI) reporting on Tuesday and the Producer Price Index (PPI) on Thursday. The market anticipates cooling inflationary pressures in core goods and services for February.
We have observed exuberant buying across certain assets. Cryptocurrencies and gold, viewed as speculative investments, reached new highs last week. The momentum in certain technology stocks showed some weakness last week. Speculative buying and shifts in momentum can lead to pullbacks in stocks, helping to prevent overvaluations and offering potential buying opportunities.
Thank you for reading, and here’s to a great week ahead!
Follow us on Facebook for these weekly updates at Unify Financial Advisors Facebook Page.