Last Week’s Summary
- S&P 500 Index fell 1.63%
- International Equities rose 0.40%
- Emerging Markets rose 1.80%
- U.S. 10-Year Treasury Yield fell to 4.44%
- Initial Jobless Claims rose to 219k
- Leading Index fell to -0.03%
- S&P Global US Manufacturing PMI fell to 49.7
- U. of Mich. Sentiment fell to 64.7
- U. of Mich. 1-Yr Inflation stayed at 4.3%
- Existing Home Sales fell to 4.08m
What to Watch for This Week
- M, 2/24/25 Chicago Fed Nat Activity
- T, 2/25/25 Conf. Board Consumer Confidence
- W, 2/26/25 MBA Mortgage Applications, New Home Sales
- Th, 2/27/25 Initial Jobless Claims, GDP, Core PCE, Durable Goods Orders
- F, 2/28/25 Personal Income, Personal Spending, Wholesale Inventories
Weekly Market Recap
Stocks suffered their worst session of 2025 as weaker-than-expected economic data and a sharp rise in consumers’ long-term inflation expectations-hitting the highest level since 1995-rattled investors.
Friday’s reports, spanning consumer sentiment, housing, and services, deepened concerns just as the Federal Reserve remains in no hurry to cut interest rates.
The S&P 500 dropped 1.6%, the Nasdaq tumbled 2.2%, and the Dow Jones Industrial Average slid 2.4%. Economically sensitive sectors, including transportation stocks and Small Caps, were hit particularly hard. Meanwhile, a gauge tracking the Magnificent Seven Mega-Caps declined 2.5%.
In a flight to safety, investors piled into Treasuries, driving the 10-Year Yield down eight basis points to 4.43%, marking its sixth consecutive weekly decline.
Looking ahead, markets will closely watch this week’s GDP and PCE reports for insights into the Fed’s policy direction. However, as it stands, there remains almost no chance of a rate move at the March meeting.
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.
