Week of February 13, 2023

Last week we had a shallow pullback in US markets after a strong start to the year.  The Dow Jones Industrial Average, S&P 500 and NASDAQ finished the week down 0.17% 1.11% and 2.41% respectively.  It was the worst weekly performance for the S&P 500 and Nasdaq for the year. 

The declines come on the heals of Federal Reserve Chairman Jerome Powell’s comments that the US still has a long way to go on combatting inflation and interest rates could continue to rise higher than markets anticipate if there is not there is not data supporting a decline. Federal Reserve Governor, Christopher Waller reaffirmed these concerns speaking in Arkansas at an agribusiness conference stating “We are seeing that effort begin to pay off, but we have farther to go…And, it might be a long fight, with interest rates higher for longer than some are currently expecting. But I will not hesitate to do what is needed to get my job done.” After the Fed increases rates 0.25% at the last meeting, the market has widely priced in another 0.25% increase for the March meeting.

To start the week, the Kansas City Chiefs defeated the Eagles in this year’s Superbowl. In economic news, the Consumer Price Index will be reported on Tuesday giving investors a good insight as to the direction of inflation. Retail sales data and corporate earnings will also be reported this week.