What to know this week


Stock final The first week of February changed slightly as investors spent corporate returns from major technology companies, a hotter January January report report, and ongoing updates on President Trump's tariff policies.

For the week, the S&P 500 (^Gspc) roughly flat, while NASDAQ compound (^Ixic) And Dow Jones' industrial average fell by about 0.4%.

In the coming week, inflation will take the stage, with the Consumer Price Index (CPI) about to be released on Wednesday morning. Updates on wholesale inflation and retail sales will also be closely tracked.

On the Corporate Front, 78 S&P 500 Companies, including McDonald's (Mcd), Coca-Cola (That), Super Micro Computer (Smi), and Airbnb (Abnb), about to report earnings.

The January Jobs Report released on Friday Continuous signs of resilience In the labor market as the unemployment rate fell unexpectedly, wages grew more than expected, and the December Monthly Job earnings were higher to show that the US labor market left 2024 on an even better foundation than reportedly reported Previous.

This motivated economists to argue that the Fed will not be likely to cut interest rates at any time soon. And if anything, he puts more pressure on inflation to show cooling before the central bank reduces borrowing costs.

“The more recent data is a sign of a labor market that has recovered its base,” wrote a senior economist Wells Fargo, Sarah House, in a note on Friday. “This suggests that the tail risk of a sudden decline in the labor market has decreased, and as a result the FOMC can wait to see how Ch1 inflation data and make an economic policy play out before taking further action on the federal fund rate.”

Stocks rebounded after dropping to start Monday As President Trump's 25% tariffs on Mexico and Canada are delayed at least a month. But what happens exactly with tariffs remains overlapping on markets as investors discuss the potential impact on inflation and, subsequently, monetary policy.

On Friday, Trump say He would publish a plan on bilateral tariffs on American imports. The comments were made during a meeting with Japan's Prime Minister Shigeru Ishiba. Trump said tariffs on Japan are an option.

In a research note on Friday, Blackrock Global Standing Income Chief Investment Officer Rick Rieder said it would probably take two weak job reports to stimulate discussion about the Fed resuming its interest rate cutting cycle. But he added that the risks around Trump's policies, including tariffs and immigration conflicts, mixed forecasts.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *