"Market Harmony Disrupted: Inflation Resurgence Spurs Caution"
Summary of Last Session:
Stocks experienced consecutive weeks of decline, with the $S&P 500(.SPX)$ falling 0.6% on the day and the $NASDAQ(.IXIC)$ dropping 1%. $Microsoft(MSFT)$ $Apple(AAPL)$ $NVIDIA Corp(NVDA)$
Rising bond yields amid renewed inflation concerns contributed to investor unease.
Key Events of the Week:
- Bond yields, particularly on 2 and 10-year Treasuries, increased steadily throughout the week, signaling heightened inflation worries despite strong economic indicators.
- Investors have abandoned hopes for a rate cut at the upcoming Federal Reserve meeting, aligning with the Fed's projection of three rate hikes this year.
- Despite recent declines, stocks have shown remarkable resilience since November, with the S&P 500 up 7.3% and the Nasdaq up 6.4% year-to-date.
Market Scenario
Investors have adjusted to the Fed's plan of three rate hikes this year, but uncertainty looms ahead of the release of the Fed's updated projections and the Bank of Japan's policy decision. Housing-market data and earnings reports from major companies will also influence market sentiment.
Conclusion:
While European markets continue to set records, caution prevails in the US as technology stocks show signs of restlessness amid rising inflation. Investors are reminded of the need to tread carefully, especially with the upcoming Federal Reserve meeting and ongoing inflation concerns.
Market conditions are subject to rapid change, and investors should carefully consider all available information before making investment decisions.
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- zippy1·03-18TOPGreat content, very informative! Thanks for sharing. 👍1Report