Last week, stocks snapped a nine-week winning streak. The Nasdaq suffered a decline of 3.25%, its worst weekly performance since September. The S&P 500 dropped 1.52% and the Dow Jones lost 0.59%. In the first week of 2024, investors assessed incoming economic data to determine if and when the Federal Reserve will start cutting interest rates. The economy continues to be strong, which could mean that the Federal Reserve might potentially delay the first of its rate cuts. Expectations of interest rate cuts just might need to be dialed back, at least a little bit.
Economic reports from last week came back mostly positive:
•Construction Spending - lower than expectation
•Job Openings - higher than expectation
•Vehicle Sales - higher than expectation
•Private Employment - higher than expectation
•Total Employment - higher than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like Manufacturing, Retail Sales, Housing and Jobless Claims.