New economic data sparked concern among investors over a slowing economy and sticky inflation. Inflation expectations are rising, home sales are dropping and manufacturing and services are low. With weak economic data, along with the possibility of new tariffs and government cost-cutting, a stock market correction could very well be on the way. Last week, the S&P 500 slid about 1.7%, while the Dow Jones and Nasdaq both lost 2.5%.
Economic reports from last week came back mostly negative:
•Manufacturing (New York) - higher than expectation
•Manufacturing (Philadelphia) - higher than expectation
•Homebuilder Confidence - lower than expectation
•New Residential Construction - lower than expectation
•Existing Home Sales - lower than expectation
•Consumer Sentiment - lower than expectation
•Jobless Claims - higher than expectation
This week, investors will look for guidance from economic reports like Manufacturing, National Economic Activity, Housing, Gross Domestic Product, Personal Income, Consumer Confidence and Jobless Claims.
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