Amid all the market turbulence of late, the Fed was a steadying influence. Stocks notched a solid gain last week as upbeat comments from the Fed helped stocks snap their four-week losing streak.
Gerry Sparrow
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By Tuesday's close, all three averages were down 3 percent on the week, and the S&P had given up its post-election gains. Stocks fell as tariffs affected Canada, Mexico, and China. Each country announced retaliatory tariffs of their own, further fanning inflationary fears among investors.
The week began under pressure after the White House said 25 percent tariffs on Mexico and Canada would begin after the 30-day pause ends in early March.
Investors were forced to navigate a week of disappointing news about the economy and inflation as the S&P 500 Index declined 1.66 percent, while the Nasdaq Composite Index dropped 2.51 percent.
Stocks advanced last week despite some intra-week volatility, punctuated by comments from Fed Chair Powell, who said the central bank doesn’t “need to be in a hurry” to lower interior rates further.
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The “Goldilocks” narrative—an economy that’s neither too hot nor too cold—made a comeback last week.
The two economic reports on Tuesday—job openings and the prices-paid index among service companies—raised fresh inflation concerns.
Stocks finished the week mixed, bookending losses around midweek gains as investors digested fresh inflation data.
There were signals of some uncertainty about the pace of future rate cuts, which slightly unsettled the markets.