Inflation and geopolitical worries dented investor confidence last week - the S&P 500 dropped 1.56%, the Dow Jones fell 2.37% and the Nasdaq was lower by 0.45%. Over the weekend, Iran launched more than 300 drones and missiles against military targets in Israel, the biggest escalation of tensions in the Middle East since the outbreak of the Israel-Hamas war last October. Now, financial markets are bracing for how Israel will respond to the attack.
Economic reports from last week came back mixed:
•Small Business Optimism - lower than expectation
•Inflation (Consumer) - higher than expectation
•Inflation (Producer) - lower than expectation
•Consumer Sentiment - lower 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.