Markets closed lower last week as investors reacted to weaker-than-expected economic data and lingering inflation worries. The S&P 500 declined 1.66%, driven by underperformance in consumer discretionary and communication services sectors. Bond prices gained on increased demand, pushing yields lower. Crude oil prices fell for the third consecutive week, while gold prices advanced.
Housing market data showed mixed results. Housing starts were down 9.8% in January, reflecting caution among builders amid higher interest rates. However, residential housing completions rose 7.6%, showing some resilience. Sales of existing homes declined 4.9%, influenced by elevated mortgage rates, though prices remained above year-ago levels.
This week, market attention will focus on the second estimate of fourth-quarter GDP and the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. Both reports could shape future monetary policy expectations.
For a 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