The S&P 500 (^GSPC) puffed to a record high last week, because new inflation data meant good news about the Federal Reserve rate reduction plans.
For the week, the Nasdaq composite (^IXIC) rose more than 2.5%, while the S&P 500 added slightly less than 1.5%. The Dow Jones Industrial Average (^DJI) added approximately 0.5%.
The company’s profit season is continued, with the head of every three -month reports from Alibaba (Baba) and Walmart (WMT). In general, it is expected that 46 S&P 500 companies will announce the results during the Handelsweek holidayort.
The coming week will bring a quieter stream of economic news. Minutes of the Meeting of the Federal Reserve in January and updates on activities in the production and service sector, as well as consumer sentiment, will be attention for investors.
Markets will be closed on Monday for the day of the presidents.
Last week two new inflation readings for the month of January showed that prices rose more than Wall Street expected, but economists found positive news for markets and the Federal Reserve within the details.
When evaluating categories from both the Consumer Price Index (CPI) and the producer Price Index (PPI) that feed on the preferred factories of the FED, the personal consumptions Expenditures (PCE) index, it seems that the price increases are likely in The month of January delayed.
Economists now expect that “core” PCE, which excludes the volatile categories of food and energy, will probably clock at 2.6% in January, compared to the 2.8% that is seen in December. As a result, markets in one or two interest rates of the FED in 2025 have not changed much compared to the week before, per Bloomberg data. And it is important that many economists still think that the Fed is closer to lowering the interest rates instead of increasing them.
“We think that the bar remains high for fans,” wrote the American economist of Morgan Stanley, Michael Gapen, on Friday in a note to customers. “The evolution of inflation expectations and second round effects of rates on the inflation of services remain important emphasis points. But for now we still think that the distribution of FED policy results is crashing in the direction of speed reductions in contrast to walks.”
Investors will look at the minutes of the FED of the January meeting, on the way to release on Wednesday at 2 p.m. et, for further instructions on how the central bank thinks about the path ahead for interest rates.
The S&P 500 is back in the vicinity of a record high, and this time it is not just a handful of technical shares. Yes, Meta (Meta) shares have risen 20 consecutive days and the profit of more than 25% this year contributed to the increase in the S&P 500. But Meta and Amzon (Amzn) are the only beautiful seven tech shares that the S&P 500 have performed better so far in 2025. In the meantime, the number of companies that surpassed the 4% index has risen to start 2025.
From the end of Wednesday, 48% of the S&P 500 performs better than the index in 2025, in line with the 25-year-old median and above 29% that was seen last year. As Richard Bernstein advisors CEO Richard Bernstein noted on the latest hit list of Yahoo Finance, the lowest number of shares had marked that the index performed better than the index in 25 years.
Freedom Capital Markets Chief Global Strategist Jay Woods told Yahoo Finance The number of shares participating in the current Rally shows strength within the bullmarkt, but does not mean exactly that the benchmark index itself will shoot higher.
“If we get a bad report from Nvidia in a few weeks [on Feb. 26]Then we could see the market lower, “Woods said.” But we will still see rotation, just not in the names that really get the headlines. “
Although many of the beautiful seven have not been the market leaders this year, Ai Euphoria appears alive and in markets. AI software company Palantir (PLTR) is the best performer in the S&P 500 in 2025, with more than 55%, followed by Super Micro Computer (SMCI), which has also risen more than 50%.
Aggressive movements in other AI theater pieces On Friday, this theme underlines while investors quickly dump some shares and positions in other bought after Nvidia announced his latest stock ownership. The AI chip giant ditch positions in serve robotics (SERV) and Soundhound (Soun). Both shares were sold on the news.
In the meantime, the shares of Weride (WRD), a Chinese autonomous driving, saw its shares almost double.
Income: Devon Energy (DVN), Oxy (Oxy), Toll Brothers (Tol)
Wednesday
Economic data: MBA mortgage applications, week ending on February 14 (2.3% in advance); Housing starts month-over-month, January (-7% expected, +15.8% in advance); Building permits month-over-month, January for the time being (-2.3% expected, -0.7% in advance); FOMC -Meeting notes, January -fed meeting
Economic data: First unemployed claims, week ending on February 15 (213,000 prior); Philadelphia Fed Business Outlook, February (25.4 expected, 44.3 Prior); Leading index, January (0% expected, -0.1% in advance)
Economic data: S&P Global US Manufacturing, February for the time being (51.2 prior); S&P Global US Services PMI, February for the time being (52.9 prior); S&P Global US Composite PMI, February for the time being (52.7 prior); University of Michigan Sentiment, February final (68.7 Prior)
Income: No remarkable income expenditure.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschaffer.
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