Another volatile week ended and a losing February for stocks. For the month, the Nasdaq led the way down, sliding nearly 4% in February due largely to a 3.5% drop last week, its worst month since April 2024. The S&P 500 declined roughly 1% for the week and 1.4% in February. Meanwhile, the Dow Jones managed to outperform, rising about 1% last week. Month to date, however, the Dow Jones dropped 1.6%. Raised concerns about heightened geopolitical risks after Donald Trump and Volodymry Zelenskyy clashed in the Oval Office on Friday. The leaders met regarding a possible Ukraine mineral rights deal for the US, which investors hoped would be a precursor to eventually bringing about an end to the war with Russia. Market volatility should be expected if there are any hints of escalation or no resolution with the Russian and Ukrainian war.
Economic reports from last week came back mostly negative:
•Consumer Confidence - lower than expectation
•New Residential Construction - lower than expectation
•Existing Home Sales - lower than expectation
•Pending Home Sales - lower than expectation
•Gross Domestic Product - in-line with expectation
•Personal Income - higher than expectation
•Jobless Claims - higher than expectation
This week, investors will look for guidance from economic reports like Construction Spending, Vehicle Sales, Employment, Labor Productivity, Consumer Credit and Jobless Claims.
Comments