Last Week’s Summary
- S&P 500 Index rose 1.76%
- International Equities gained 2.71%
- Emerging Markets rose 1.87%
- U.S. 10-Year Treasury Yield fell to 4.62%
- Initial Jobless Claims rose to 223k
- Leading Index fell to -0.1%
- U. of Mich. Sentiment fell to 71.1
- U. of Mich. 1-Yr Inflation stayed at 3.3%
What to Watch for This Week
- M, 1/27/25 New Home Sales
- T, 1/28/25 Durable Goods Orders, Conf. Board Consumer Confidence
- W, 1/29/25 FOMC Meeting, MBA Mortgage Applications, Wholesale Inventories
- Th, 1/30/25 Initial Jobless Claims, GDP, Core PCE Price
- F, 1/31/25 Personal Income, Personal Spending, MNI Chicago PMI
Weekly Market Recap
Stocks experienced a slight pause near record highs, but the market still secured its strongest start to a presidential term since Ronald Reagan took office in 1985.
On Friday, the S&P 500 slipped 0.3%, the Nasdaq 100 dropped 0.6%, and the Dow Jones Industrial Average declined 0.3%. A Bloomberg Index tracking the “Magnificent Seven” Mega-Cap stocks fell 0.4%, while the Russell 2000 retreated 0.3%.
Despite a sell-off in chipmakers impacting Friday’s session, the S&P 500 managed to post a 1.7% gain for the week. This rally came after President Donald Trump promoted policies aimed at stimulating economic growth and reducing taxes, while signaling a softer stance on tariffs against China-although he maintained threats of broader action.
Meanwhile, the MOVE Index, which measures expected Treasury volatility, fell to its lowest level since mid-December. Next week, the focus shifts to the kickoff of big-tech earnings season, a key test for the market’s risk-on sentiment. Investors are keen to see if demand for artificial intelligence meets lofty expectations.
Earlier this week, optimism in the sector was fueled by a $100 billion joint venture formed by SoftBank Group Corp., OpenAI, and Oracle Corp. to invest in AI infrastructure. Ahead of next week’s Federal Reserve decision, bonds rallied, supported by data showing a decline in U.S. consumer sentiment and a slight slowdown in business activity growth.
Despite this, companies remained optimistic about their outlook. The yield on 10-Year Treasuries eased by two basis points to 4.62%.
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.
