Markets Advance Amid Volatile Week:
Stocks advanced last week despite some intra-week volatility as some investors expressed concern about the strength of the economy.
The S&P 500 Index gained 1.47%, while the Nasdaq Composite Index picked up 2.58%. The Dow Jones Industrial Average added 0.55%. The MSCI EAFE Index, which tracks developed overseas stock markets, tacked on 2.53%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 1/6/25 = 0)
The Fed Is in “No Hurry”
Stocks opened the week higher, quickly discounting news that the White House would impose 25% tariffs on all steel and aluminum imports. Tuesday was a volatility session, punctuated by comments from Fed Chair Powell, who told lawmakers the central bank doesn’t “need to be in a hurry” to lower interior rates further.3,4
Stocks opened lower Wednesday after a warmer-than-expected update on consumer prices. But stocks showed some resilience and rallied throughout the day. The Nasdaq managed to claw back its losses before Wednesday’s close.5
On Thursday, the White House announced a plan for reciprocal tariffs (levies on goods imported into the U.S. from countries that impose tariffs on U.S.-exported goods). But markets rallied on news that the administration would pause tariffs until they determine how much to levy on each country. Stocks took a breather on Friday, shrugging off a weaker-than-expected retail sales report.
The S&P ended shy of a record close, and the Nasdaq finished the week above the 20,000 mark.6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Inflation in Focus
The Consumer Price Index report showed prices rose 0.5% in January–slightly hotter than expected. Shelter costs remained elevated, increasing 0.4% for the month.
Core CPI, which excludes volatile food and energy prices, was also above forecast. Food prices rose 0.4%, pushed by a 15.2% increase in egg prices related to ongoing issues forcing farmers to cull chicken flocks. Energy prices picked up 1.1% as gasoline prices rose.7,8
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, February 14, 2025
2Investing.com, February 14, 2025
3MarketWatch.com, February 10, 2025
4CNBC.com, February 11, 2025
5The Wall Street Journal, February 12, 2025
6CNBC.com, February 14, 2025
7The Wall Street Journal, February 12, 2025
8MarketWatch.com, February 10, 2025
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