Market Recap (2/18/24)
Market Recap of the Week of February 12, 2024 - February 16, 2024
Overall Market Trends:
The market started the week off strong, rising on Monday. However, as the week progressed and new inflation data was released, the market began to take a dive with most indices finishing the week negative. The sole index finishing positive was the New York Stock Exchange Composite (NYSE) which rose 137 points (+0.79%). On the other hand, the S&P 500 dropped 21 points (-0.42%), the Dow Jones Industrial Average decreased 15 points (-0.04%), and the NASDAQ Composite fell 233 points (-1.46%).
Markets stayed relatively steady on Monday. However, on Tuesday, the January report of the Consumer Price Index (CPI) rose higher than expected. The index increased by 0.3% in January while economists had estimated a 0.2% increase in the CPI. The Consumer Price Index is a key inflation indicator. When the index increases, the Fed may decide to raise interest rates to curb inflation. This action in turn would increase the cost of borrowing and therefore decrease their profitability and stock price. Therefore, this data puts new rate hikes back in play and most likely delays future rate cuts - the market’s main focus. This news caused all major indices to take significant hits with most of them finishing the day down over 1.00% from the prior close.
On Friday, more inflation data - the Producer Price Index - was reported to be higher than expected following this same trend.
Past Earnings Report:
Looking Towards the Future
Future Earnings Reports: