Last Week: 2.70%
YTD: 7.27%
1 Year: 23.98%
Dow Jones Industrial Average
Last Week: -0.02%
YTD: 1.96%
1 Year: 14.28%
Last Week: 4.20%
YTD: 6.18%
1 Year: 31.85%
Last Week: 1.57%
YTD: -0.92%
1 Year: 14.78%
YTD: 8.41%
1 Year: 33.98%
YTD: 5.26%
1 Year: 14.50%
Key Inflation Data
A key inflation indicator used by the Fed, the personal consumption expenditures price index excluding food and energy, rose 2.8% from a year ago during March. This was the same as the number from February, showing inflation did not go down. This was above the analysts’ expectations of 2.7%. The stock market reacted very little to this data, surprisingly. Personal spending rose 0.8% for the month, a small amount higher than the expected increase of 0.7%. Consumers continue to spend and keep pace with inflation.
GDP Growth Slows
U.S. economic growth, as measured by Gross Domestic Product, was weaker than expected at the start of the year. The annual increase slowed to 1.6%, adjusted for inflation. The price of goods rose at a faster pace, cutting into GDP growth. Economists had been expecting an increase of 2.4% following the 3.4% gain in the fourth quarter of 2023. The stock market traded down following this news that the economy may be cooling off. This is, however, one indicator the Fed will use when deciding to start cutting rates. Wall Street is now expecting one to two cuts this year beginning in September.
Earnings Season Underway
Last week kicked off a slew of corporate earnings. Strong earnings have given investors a sigh of relief despite inflation pressures and slowing GDP. Of the companies releasing earnings last week, over 75% of them have beaten the analysts’ expectations, according to FactSet data. The strong earnings helped lead the S&P and Nasdaq to their best week this year and snap a 3-week losing streak. Later this week, we will see the Fed’s monetary policy meeting notes and non-farm payroll numbers.
