Last week brought encouraging inflation data and a pause on interest rate hikes from the Federal Reserve - the S&P 500 was up 2.6%, its fifth positive week in a row, the Nasdaq Composite was up 3.3%, its eight straight positive week, and the Dow Jones was up 1.3%, its third straight positive week. Stocks are at their highest levels since April of 2022.
Economic reports from last week came back mostly positive: •Small Business Optimism - higher than expectation •Manufacturing (Philadelphia) - higher than expectation •Manufacturing (New York) - higher than expectation •Consumer Sentiment - higher than expectation •Retail Sales - higher than expectation •Jobless Claims - higher than expectation In a holiday-shortened week, investors will look for guidance from economic reports like Housing, Economic Activity, Manufacturing and Jobless Claims.