Last week, the S&P 500 rose for the first week in 2025 on signs of easing inflationary pressures and strong earnings from major banks. All sectors posted gains, led by financials and energy, up 6.1% each. Materials closed 6% higher.
Official consumer inflation data released showed core inflation, which excludes the volatile food and energy components, unexpectedly slowed in December.
Retail sales rose at a slower-than-projected pace last month, while homebuilder confidence unexpectedly grew in January. Housing starts climbed more than expected last month.
Markets widely expect the Federal Open Market committee to hold interest rates steady later this month, according to the CME FedWatch tool.
The International Monetary Fund raised its global and US economic growth expectations for this year, but said the balance of risks to the overall outlook is tilted to the downside in the medium term.
JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley reported Q4 financial results that topped Wall Street’s views. The performances helped lift bank stocks and contributed to the financials sector’s weekly gain.
Major companies scheduled to report results this week include Netflix, Johnson & Johnson, Charles Schwab, American Express, and more.
This week’s economic calendar will feature the existing home sales report for December and the University of Michigan’s preliminary reading of consumer sentiment for January, both due Friday. Markets were closed Monday in observance of Martin Luther King Jr Day.
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