The S&P 500 (^GSPC) reached a record high last week, driven by new inflation data that suggests good news about the Federal Reserve’s rate cut plans. The Nasdaq Composite rose more than 2.5% and the Dow Jones Industrial Average added about 0.5%. Corporate earnings season will continue, with quarterly reports from Alibaba (BABA) and Walmart (WMT).
Economists are positive on inflation data, with price increases likely slowing in January. The Personal Consumptions Expenditures (PCE) index is expected to clock in at 2.6% for the month, down from 2.8% in December. This suggests that the Fed may cut interest rates rather than hike them.
Investors will focus on the Federal Reserve’s minutes from its January meeting, due out on Wednesday. The central bank’s path forward for interest rates is a key point of emphasis. While some economists still think the bar for Fed hikes remains high, many believe the distribution of policy outcomes skews in the direction of rate cuts.
The S&P 500 is back near a record high, driven by more than 25% gain from Meta (META) and Amazon (AMZN). However, not all tech stocks are performing well. The number of companies outpacing the index’s 4% gain has soared to start 2025.
Markets will be quiet this week, with only a few economic news releases scheduled. Investors should also keep an eye on AI-related stocks, as Palantir (PLTR) and Super Micro Computer (SMCI) are top performers in the S&P 500.
Source: https://finance.yahoo.com/news/stocks-near-record-highs-as-investors-await-fed-minutes-manufacturing-update-what-to-know-this-week-124503855.html