Stocks snapped a two-week winning streak, as monetary and fiscal policy announcements grabbed center stage. The S&P 500 closed in the middle of the recent trading range.
The new Fed Chairman raised market concerns of the possibility of four rate hikes instead of three, and President Trump announced plans to impose 10% and 25% tariffs on aluminum and steel, respectively.
The economic backdrop remained solid, with better than expected personal income growth, but also accelerating inflation.
Coming Week: The “tariff tantrum” debate will likely continue and raise market concerns about global retaliation. It’s also jobs week, and the market is looking for a 200,000 increase in payrolls with a modest drop in the unemployment rate to a new cycle low.
Fed to the rescue again: Stocks finished a rollercoaster ride on the plus side, helped by a favorable Monetary Policy Report on Friday.
Mostly positive news in a light economic calendar.
Q4 earnings reports winding up on a very healthy note.
Coming Week: A full calendar of economic reports, but new Fed Chair Jerome Powell’s Congressional testimony scheduled for Tuesday and Thursday will be the focus for markets.
Stocks rebounded following the rough previous week, shrugging off inflation concerns, but bond yields continued to rise.
A higher than expected CPI was the dominant statistic in a full economic calendar.
Q4 earnings reports continued to exceed expectations. Record upward revisions.
Policy: Trump’s 2019 Budget proposal totals $4.4 trillion and focuses on defense and border security. However, it does not balance over the next 10 years even under optimistic assumptions.
February 15th was the official deadline for companies to adopt the new federal tax withholding tables.
Coming Week: Monday holiday, a lighter economic calendar, and earnings season begins to wind down.
