A look back
- Most major U.S. stock indexes ended last week lower as the S&P 500 fell 1.3%, underperforming international markets for a fifth straight week. International developed markets gained 1.9%, while emerging markets advanced 3.2%.
- The U.S. Treasury yield curve flattened as rates fell across the curve, partly in reaction to an inflation reading that came in cooler than expected. The 2-year yield fell 0.09% to 3.40%, while the 10-year fell by more to 4.05%, its lowest level since November.
- The January jobs report stood out during a busy economic data week. Job gains beat expectations and the unemployment rate edged lower, though there were sizable downward revisions to last year.
A look ahead
- With over 80% of S&P 500 names having already reported Q4 earnings, the earnings growth rate of nearly 13% remains above the 8.3% expected at the end of 2025, according to FactSet. An additional 64 will report in the holiday-shortened week ahead.
- Another busy week of economic data will be capped off on Friday with the first release of Q4 Gross Domestic Product (GDP), alongside the Federal Reserve’s preferred inflation gauge, Core Personal Consumption Expenditures (PCE).
- Economic releases: Housing Starts, Building Permits, New Home Sales, January FOMC Minutes, GDP, December PCE, Consumer Sentiment.
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