The US stock market has hit a six-month low due to growing concerns over slowing economic growth and fears about the impact of tariffs on the outlook. The S&P 500 fell nearly 2.3% last week, while the Dow Jones dropped 3%, or more than 1,300 points. The tech-heavy Nasdaq Composite also fell about 2.4%. On Thursday, the S&P 500 officially entered a correction as it fell 10% from its record high on February 19.
The Federal Reserve’s next monetary policy decision is set to take center stage this week, with investors expecting no interest rate cuts in 2025. However, some economists believe that the Fed may need to communicate patience due to ongoing fiscal policy uncertainty.
Meanwhile, retail sales data for January will be released on Monday, which could provide insights into consumer spending trends. Economists expect a rebound in February’s numbers, with consensus projecting retail sales to rise 0.6%.
The tech sector has been particularly hard hit, with the “Magnificent Seven” stocks (Nvidia, Alphabet, Amazon, Meta, Apple, Microsoft, and Tesla) off about 20% from their recent 52-week highs. However, strategists argue that these companies remain crucial to the market’s direction.
In a weekly calendar of economic data releases and earnings announcements, investors will be watching for any clues about future interest rate cuts or policy changes.
Source: https://finance.yahoo.com/news/a-fed-meeting-and-retail-sales-data-greet-a-flailing-stock-market-what-to-know-this-week-114218621.html