Stocks enjoyed modest gains last week as the S&P 500 advanced 0.5%, trailing international developed markets’ 0.8% increase. The S&P Small Cap 600 also had a positive week, up 0.6%, following seven straight weeks in the red.
Interest rates fell as Federal Reserve (Fed) Chair Jerome Powell’s comments were more dovish than feared and the central bank kept rate cuts on pause. The 10-year yield ended at 4.24% as the 2-year ended at 3.94%.
Retail sales were weak with the February data coming in well below expectations; January’s retail sales figure was also revised lower.
A look ahead
Inflation data will be the economic highlight with Core Personal Consumption Expenditures, the Fed’s preferred measure, set to be released. Expectations are that inflation rose 2.7% year-over-year in February, above January’s 2.6%.
With the Fed meeting in the rearview, seven Fed officials are scheduled to speak. Fresh housing and consumer sentiment data is also on deck.
Economic releases: Manufacturing and Services indices, New Home Sales, Pending Home Sales, GDP, PCE, U. of Michigan Consumer Sentiment.
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