Unify Financial Advisors Weekly Market Update
Markets were mixed last week as investors weighed rising inflationary pressures, fluctuating oil prices, and mixed consumer spending. The S&P 500 briefly reached another record high before pulling back to end the week nearly flat. Memory storage stocks sold off, capping a meteoric rise that started last September. Treasury yields also climbed sharply following hotter-than-expected inflation data, with the 30-year Treasury yield reaching its highest level since 2007.
Economic reports showed some inflationary pressures alongside steady consumer demand. April’s Consumer Price Index (CPI) rose and 3.8% year-over-year, while core CPI increased 2.8% annually. An aberration in shelter data from the November government shutdown led to higher shelter inflation, which is unlikely to persist. However, more forward-looking producer prices accelerated, with the Producer Price Index (PPI) climbing 1.4% in April and 6.0% over the past year. Retail sales increased 0.5% in April and were up 4.9% year over year, supported by continued strength in online spending.
Weekly Outlook
This week, investors will focus on the release of FOMC meeting minutes, consumer sentiment data, and housing starts. Geopolitical developments affecting oil prices are likely to have the greatest impact on markets in the short run.
Please read the full Market Week report for details on last week’s market and economic activity.
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Regards,
David Bennett