Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
Welcome to this week’s Market Drama!
Stock Market Update:
- S&P 500: Up 1.5% for the week and 4% year-to-date—1% away from all-time highs.
- Nasdaq: Up 2.6% for the week, up 3.7% for the year.
- January CPI disappointed:
- Core CPI (food & energy excluded) was 3.3%, expectation was 3.2%
- Headline CPI was 3%, expectation was 2.9%.
- Federal Reserve: Holding off on rate cuts until inflation nears 2%.
- White House: Possible delay on new tariffs, boosting market sentiment. Fears of tariffs had weighed on earnings outlook.
- S&P 500: 493 of 500 companies reported; earnings exceed forecasts.
- Growth: Profits expected to rise 16-17% YoY, surpassing projections.
- Sector Shift: Non-tech sectors are driving earnings growth, marking a broader market recovery beyond tech.
- Outlook: Strong earnings, especially from non-tech sectors, are supporting the market. If tariffs remain off the table, earnings could drive further gains.
Stay tuned for next week.
– Andres
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