A look back
- Stocks enjoyed a solid week with the S&P 500 gaining 1.1%, outpacing international developed markets’ 0.9% gain. Large caps led the advance as Communication Services was the top performing sector; Consumer Staples had the steepest decline.
- The yield curve flattened as interest rates rose. The 2-year U.S. Treasury yield climbed 0.07% to 3.48% while the 10-year yield closed at 4.08%.
- The Supreme Court ruled the Trump administration exceeded its legal authority by using IEEPA to impose tariffs, though the court did not comment on whether the government must repay collected duties. Meanwhile, fourth quarter GDP came in softer than expected as inflation data was hotter.
A look ahead
- Earnings will remain in focus with 59 companies in the S&P 500 set to report. Consumer and technology companies will be in the spotlight, highlighted by Nvidia and several software stocks.
- The Producer Price Index (PPI) will be the key economic release. This will provide important context after last week showed the Federal Reserve’s preferred inflation gauge, Core Personal Consumption Expenditures (PCE), was higher than expected. Investors will also keep a close eye on geopolitical events and the State of the Union.
- Economic releases: Factory Orders, Consumer Confidence Index, Wholesale Inventories, PPI.
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