Despite reaching new highs earlier in the week, Wall Street closed the week on a lower note, with the Dow Jones Industrial Average experiencing its worst week since October. The S&P 500 and Nasdaq Composite also ended in the red, with losses of 0.26% and 1.17%, respectively.
Earnings season continued to wind down with mostly positive results, as 73% of S&P 500 companies reported an upside earnings surprise and 64% reported better-than-expected revenue results. However, there were some disappointments, such as Foot Locker, which saw a sell-off in response to its report.
The big economic data drop of the week was the February nonfarm payrolls report, which supported the “soft landing” thesis with more-than-expected job additions. However, a higher-than-anticipated unemployment rate and softer annual wage inflation tempered the positive news.
Looking ahead, key macroeconomic updates will be in focus, including the February consumer price index report, which economists are predicting will show a 3.1% annual increase at the headline level. The report will be closely watched by investors as they consider the Federal Reserve’s next move on interest rates.
Overall, the week ended with Wall Street facing challenges despite earlier highs, highlighting the delicate balance between economic indicators and market performance. Investors will continue to monitor upcoming reports and data releases for further insights into the state of the economy and potential market trends.
