Markets closed higher last week despite mixed economic signals, including weaker retail sales and ongoing tariff concerns. The S&P 500 posted a 1.47% gain, with information technology and consumer staples leading the rally, while consumer discretionary and financials lagged. Treasury yields edged lower, and crude oil prices remained volatile amid supply concerns.
Inflation remains a key concern. The Consumer Price Index (CPI) rose 0.5% in January, marking the largest monthly increase since August 2023. Higher shelter and energy costs contributed to the rise, reinforcing expectations that the Federal Reserve will maintain its cautious approach to interest rate cuts.
This week’s focus will be on the housing market. Reports on housing starts and existing home sales will provide insight into real estate trends. Additionally, market participants will watch for further trade policy developments and the FOMC minutes.
For more detailed analysis of last week’s markets and economic trends, check out the latest issue of Market Week.
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David Bennett