Last week, the S&P 500 declined 3.10%. The employment report showed that employment rose by 151,000 in February, just missing expectations for 159,000. The unemployment rate ticked up 0.10% to 4.1%, and wage growth continued with a 0.3% monthly increase and a 4.0% annual increase in average hourly earnings.
Stocks are off to a volatile start this week, with the S&P 500 down 2.7% today and 4.59% for the year. Bonds have been the bright spot, gaining 0.48% today and 2.15% for the year, providing some stability to stock and bond portfolios. Key inflation data this week, including the Consumer Price Index and Producer Price Index, could help ease inflationary concerns. However, investors will continue to monitor and adjust expectations with developments in trade policy and import tariffs.
Stock market sell-offs can be a healthy reset for long-term sustainable average returns and investor expectations. After two stellar years of stock performance, stocks are pricing in uncertainty. Diversified portfolios designed to meet long-term objectives should remain invested through these ups and downs. Staying invested through market cycles has historically led to better long-term outcomes than attempting to time the market.
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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Thank you for reading! You are welcome to contact me directly with questions or comments.
Regards,
David Bennett