Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
Welcome to this week’s Market Drama!
Stock Market Update:
- S&P 500: Down 1% for the week, up 1.2% YTD.
- Nasdaq: Down 3.5% for the week, down 2.4% YTD.
- MSCI EAFE (Intl. Stocks ex-Emerging Markets): Up 8% YTD, outperforming U.S. stocks.
- Tech Selloff: The Magnificent Seven are now in correction territory after leading gains for two years.
- Nvidia: Fell 8.5% despite beating earnings expectations, showing high valuation pressure.
- Earnings: 2025 estimates still project double-digit growth, with non-tech sectors performing well.
- Tariff Concerns: Potential March 4th tariffs on Canada, Mexico, and China.
- Retail Sales: Weaker than expected in January.
- PMI (Business Activity): Slowed more than anticipated.
- Jobless Claims: Increased over the past two weeks.
- Economic Surprise Index: Declined over the last 4-5 weeks from high levels.
- Labor Market: Payroll report on Friday will be key to assessing job market strength.
- Outlook: Economy is in a soft patch, but if policy and geopolitical risks remain stable, markets could digest recent volatility.
Stay tuned for next week.
– Andres
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