Last Week’s Summary
- S&P 500 Index fell 0.23%
- International Equities gained 0.62%
- Emerging Markets rose 1.40%
- U.S. 10-Year Treasury Yield fell to 4.49%
- Initial Jobless Claims rose to 219k
- Change in Nonfarm Payrolls rose to 100k
- Unemployment Rate fell to 4.0%
- U. of Mich. Sentiment fell to 67.8
- ISM Services Index fell to 52.8
What to Watch for This Week
- M, 2/10/25 NY Fed 1-Yr Inflation Expectations
- T, 2/11/25 NFIB Small Business Optimism
- W, 2/12/25 MBA Mortgage Applications, CPI, CPI Core
- Th, 2/13/25 Initial Jobless Claims, PPI, PPI Core
- F, 2/14/25 Retail Sales Advance, Industrial Production
Weekly Market Recap
Markets opened in turmoil last week, driven by President Trump’s announcement of tariffs on Mexico, Canada, and China.
While tariffs on Mexico and Canada were postponed by a month following discussions with their leaders, this did little to calm investor concerns. Wall Street traders, already wary of the inflationary impact of U.S. tariffs, found no reassurance in economic data that reinforced fears of persistent price pressures.
This strengthened speculation that the Federal Reserve would remain cautious in cutting interest rates. As a result, stocks erased their weekly gains, with the S&P 500 falling about 1% on Friday. President Trump escalated trade tensions further by announcing plans for reciprocal levies next week.
Equities came under additional pressure after data showed a decline in consumer sentiment, driven by inflation concerns. Meanwhile, mixed jobs data painted a picture of a moderating-yet still resilient-labor market.
Bond prices declined, while megacap stocks fell, weighed down by a disappointing earnings outlook from Amazon.com Inc. Nonfarm payrolls increased by 143,000 in the past month, following upward revisions to the prior two months.
However, annual job gains averaged 166,000 per month last year, marking a slowdown from the initially reported 186,000 pace. The unemployment rate stood at 4.0%, though methodological adjustments related to new population estimates at the start of the year made direct comparisons to prior months unreliable.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
HOW to Invest like a PRO!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
