Stocks added to their early 2023 gains amid a busy stream of mixed corporate earnings results and conflicting economic data.
Solis Wealth Economic Update
Stocks showed mixed results last week as recession fears resurfaced in response to weak economic data and a tepid start to a new corporate earnings season.
Stocks rallied last week thanks to fresh confirmation of inflation’s cooling trend and growing optimism that an inflation slowdown may provide the Fed with space to ease up on future rate hikes.
A strong Friday rally triggered by fresh signs of moderating inflation pushed stocks into positive territory to begin the new year.
In a holiday-shortened week, erratic trading left stocks marginally down for the week.
Hawkish comments by the Fed and weak economic data heightened investors’ recession concerns and sent stocks lower last week.
Recession fears and concerns that the Fed may consider a longer rate-hike cycle sent stocks lower for the week.
Stocks ended higher last week as investors navigated the crosscurrents of a potential easing in future rate hikes and continued strength in the labor market.
Growing optimism that the Fed may be ready to ease future interest rate hikes sent stocks higher in a quiet trading week.
The stock market edged lower last week as it digested a crosscurrent of conflicting economic data and contrasting comments from Fed officials.