Stocks Near Record Highs as Investors Eye Fed Minutes & Manufacturing Data
The stock market continued its upward momentum last week, with the S&P 500 hitting a record high as investors reacted to fresh inflation data and potential Federal Reserve rate cuts. The Nasdaq Composite surged over 2.5%, the S&P 500 gained nearly 1.5%, and the Dow Jones added about 0.5%.
Key Market Highlights
Inflation & Fed Watch:
• January inflation reports showed higher-than-expected price increases.
• However, economists believe the Fed’s preferred inflation measure (PCE) likely slowed, reinforcing expectations of rate cuts in 2025.
• Markets anticipate one or two rate cuts this year, as investors analyze Fed’s policy stance.
• Fed’s January meeting minutes (to be released Wednesday) will provide further clarity.
Earnings Season Continues:
• 46 S&P 500 companies, including Alibaba (BABA) and Walmart (WMT), will report their quarterly earnings.
Manufacturing & Economic Updates:
• Investors will also watch manufacturing, services sector, and consumer sentiment data for insights into economic growth.
The Magnificent Stocks Surge
• Tech stocks remain dominant, but it’s not just the Magnificent Seven driving gains.
• Meta (META) has soared 25% this year, rising for 20 consecutive days.
• However, Amazon (AMZN) and Meta are the only two among the Magnificent Seven to outperform the S&P 500 in 2025.
• The number of companies outpacing the index’s 4% gain has surged, showing broader market strength.
Looking Ahead
• Markets are closed Monday for Presidents’ Day in the U.S.
• Fed minutes on Wednesday will be the key event of the week.
• Investors remain optimistic but cautious as they monitor inflation trends and interest rate signals.
Stay tuned for more updates as the market navigates another crucial week!
The stock market continued its upward momentum last week, with the S&P 500 hitting a record high as investors reacted to fresh inflation data and potential Federal Reserve rate cuts. The Nasdaq Composite surged over 2.5%, the S&P 500 gained nearly 1.5%, and the Dow Jones added about 0.5%.
Key Market Highlights
Inflation & Fed Watch:
• January inflation reports showed higher-than-expected price increases.
• However, economists believe the Fed’s preferred inflation measure (PCE) likely slowed, reinforcing expectations of rate cuts in 2025.
• Markets anticipate one or two rate cuts this year, as investors analyze Fed’s policy stance.
• Fed’s January meeting minutes (to be released Wednesday) will provide further clarity.
Earnings Season Continues:
• 46 S&P 500 companies, including Alibaba (BABA) and Walmart (WMT), will report their quarterly earnings.
Manufacturing & Economic Updates:
• Investors will also watch manufacturing, services sector, and consumer sentiment data for insights into economic growth.
The Magnificent Stocks Surge
• Tech stocks remain dominant, but it’s not just the Magnificent Seven driving gains.
• Meta (META) has soared 25% this year, rising for 20 consecutive days.
• However, Amazon (AMZN) and Meta are the only two among the Magnificent Seven to outperform the S&P 500 in 2025.
• The number of companies outpacing the index’s 4% gain has surged, showing broader market strength.
Looking Ahead
• Markets are closed Monday for Presidents’ Day in the U.S.
• Fed minutes on Wednesday will be the key event of the week.
• Investors remain optimistic but cautious as they monitor inflation trends and interest rate signals.
Stay tuned for more updates as the market navigates another crucial week!