Unify Financial Advisors Weekly Market Update
After a mid-week rally, the S&P 500 lost steam and closed down 0.44%. Year-to-date, the index remains slightly positive, up 0.49%. Defensive sectors, such as consumer staples, utilities, and health care, outperformed, while financials and information technology lagged.
The Producer Price Index rose 0.5% in January, sparking concerns about inflation. Unemployment claims increased slightly, with 212,000 new claims for the week ended February 21.
Geopolitical tensions in the Middle East escalated over the weekend, driving volatility in energy markets and pushing oil prices higher. Higher crude prices can influence inflation expectations and broader market sentiment. However, the economic impact from a temporary rise in oil prices could be muted.
Earnings from NVDA and DELL were strong, driven by demand for compute and data centers. The massive amounts of data required to process AI tokens should continue to drive demand for compute and efficient GPUs.
Weekly Outlook
This week, we’ll be keeping an eye on February’s labor figures and purchasing managers’ surveys for manufacturing and services. The Iran conflict could drive energy prices higher and put pressure on global stock markets.
Please read the full Market Week report for details on last week’s market and economic trends.
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Regards,
David Bennett