Stocks notched a solid gain last week, rallying behind upbeat earnings, a dovish Fed, and mixed economic data.
Gerry Sparrow
127 posts
Despite sticky inflation, the Fed reiterated that rate cuts were still on the table for this year, while several leading money center banks forecasted lower growth for the remainder of 2024 due partly to inflation and higher-than-expected rates.
Fed officials' mixed comments on interest rates led to a volatile week for stocks, with all three major averages ending the day down over 1% for the first time in a month.
Stocks experience a narrow gain, driven by mixed economic news and a rebound in durable goods orders.
The Fed's decision to keep rates steady and signal three rate cuts this year boosted markets, with all three averages closing at record highs.
The news rattled investors and contributed to stocks closing lower for three consecutive days to end the week, with the energy, financials, and materials sectors all posting gains last week, showing that other groups may join the tech-led rally.
Stocks were down for the week as investors appeared to take some profits and traders parsed Fed Chair Jerome Powell's Congressional testimony.
As stocks extended their tech-lead advance, AI names powered the gains in the S&P 500 and the Nasdaq Composite.
The market's enthusiasm for AI was palpable, with investors concluding that AI's impact may just be starting and anticipating it will be a driving economic force in 2024 and beyond.
Markets were quiet Monday but opened lower Tuesday in response to the January inflation report that showed higher-than-expected consumer prices.
The stock market experienced solid gains last week, concluding the trading week on a positive note, thanks to robust corporate reports and favorable inflation news.