The Strength of the Market is: Strong

Last week, stocks declined - the S&P 500 and Dow Jones were down about 1%, the Nasdaq slipped more than 2%. Computer chip stocks have been down three out of the last four weeks, down 8% on Friday alone. Technology companies may be spending too aggressively on Artificial Intelligence, giving tech and computer chip stocks some fatigue. Further escalations in the US-Iran war remained in focus, last week. Oil prices started to rise again with Brent crude oil trading at above $85 per barrel. Kuwait said, on Friday, that Iran attacked a power and water desalination plant. In addition, US Central Command said that it had completed its sixth consecutive evening of strikes against Iran, hitting dozens of military targets, including logistics infrastructure and maritime capabilities. Iranian officials claimed to have targeted US military forces in Syria and Bahrain.

Economic reports from last week came back mostly positive:

•Small Business Optimism - higher than expectation

•Inflation (Consumer) - lower than expectation

•Inflation (Producer) - lower than expectation

•Manufacturing (New York) - higher than expectation

•Manufacturing (Philadelphia) - higher than expectation

•Retail Sales - in-line with expectation

•Pending Home Sales - lower than expectation

•Homebuilder Confidence - lower than expectation

•New Residential Construction - higher than expectation

•Consumer Sentiment - higher than expectation

•Jobless Claims - lower than expectation

This week, investors will look for guidance from economic reports like Housing, Manufacturing and Jobless Claims.