A look back
- Global markets extended their decline on concerns over large artificial intelligence (AI) spending, with the S&P 500 falling 0.5%, led by a 6.2% drop in communication services and a 1.9% decline in industrials. Emerging and developed markets fared even worse, falling 2.6% and 1.5%, respectively.
- U.S. Treasury yields eased last week as investors shifted toward safe-haven assets. The 10-year U.S. Treasury finished back below 5%. Crude and Brent oil rose back above $100.
- Housing data pointed to continued weakness with declines in both starts and pending sales. Consumer sentiment declined to 48, nearing a record low.
A look ahead
- 24% of S&P 500 constituents have reported so far, but there is no slowdown in earnings reports. Alphabet and Microsoft headline this week with both reporting on Wednesday.
- Wednesday is also be the day of the Federal Reserve Open Market Committee (FOMC) rate decision. The market expects the Fed to hold rates steady. Fed Chair Warsh’s press conference will be closely watched as investors try to understand where rates might be headed. The market currently expects three additional hikes over the next 12 months.
- Economic releases: Durable Goods Orders, New Home Sales, Wholesale and Retail Inventories, Personal Income, Personal Spending, Personal Consumption Expenditures (PCE) Price Index
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