For most of the week, the market was in relatively good shape. However, things changed when Friday came around, and some worse-than-anticipated economic data sent the market spiraling downward. To end the week, the Dow was down 2.14%, the S&P was down 2.97%, the Russell was down 3.61%, and the Nasdaq was down a whopping 4.38%. This marks one of the sharpest declines we’ve seen in quite some time, with the Dow and S&P nearing correction territory and the Nasdaq and Russell nearing crash territory.
Throughout most of the week, things looked relatively good, with several real estate-related indicators coming roughly in line with expectations, and the Q4 GDP revision coming in slightly better than anticipated. However, Friday was when all hell broke loose. Despite personal income increasing more than expected, core PCE came in a bit hotter than anticipated, and consumer sentiment came in incredibly low. This led markets to sell off on Friday, sending the indices into freefall.
Unfortunately, we don’t get a break this week in terms of economic data releases. We have a slew of Fed representatives speaking throughout the week, on top of some incredibly important data coming out. We kick things off on Tuesday with the JOLTS report, followed by ADP employment on Wednesday. We then end the week with the US employment report, unemployment rate, and hourly wages on Friday. In the recent past, all of this employment-related data has moved markets in a huge way when it hasn’t come in line with expectations, so it will be incredibly important to pay attention to!
Unfortunately, there aren’t any notable earnings releases this week. However, things will begin to heat up next week, as Q1 earnings season kicks off with the big banks and airlines!
Monitoring the market conditions this week.
Want to stay in the know? Want tips delivered right to your inbox? Simply provide your email address below and you’ll get a high-value newsletter, designed to help you trade stronger.
