A look back
- Stocks struggled as the S&P 500 fell -1.6% and both international developed and emerging markets dropped -2.0%. Energy and utilities were the only two S&P 500 sectors in the green as financials and industrials were the worst performing sectors.
- Interest rates surged as the 10-year U.S. Treasury yield jumped 0.15% to 4.28% and the 2-year yield rose 0.17% to finish at 3.73%. Prior to Thursday, the 2-year yield hadn’t breached 3.70% since August.
- The conflict in the Middle East drove extreme volatility in oil prices. U.S. Crude Oil futures spiked as high as $119/barrel on Monday before closing the week at $99. Meanwhile, inflation data was in line with expectations and Q4 GDP was revised lower.
A look ahead
- The Federal Reserve (Fed) will highlight a flurry of global central bank decisions. While the Fed is widely expected to hold rates steady, investors will scrutinize its Summary of Economic Projections for a view on the expected path of interest rates and the economy.
- Housing will be in focus on the economic data front with pending and new home sales on deck. Elsewhere, Micron headlines a handful of key technology and consumer earnings reports.
- Economic releases: Industrial Production, Pending Home Sales, FOMC Meeting, PPI, Factory Orders, New Home Sales, Wholesale Inventories.
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