Coming off last weeks gains, the S&P 500 had a down week closing at 6,878. Monday was a bearish day for the markets as AI concerns disrupted the markets with the S&P 500 down just over 1%. On Tuesday major stock averages rose as those AI fears dissipated, and the S&P 500 clawed back most of Mondays losses. On Wednesday stocks built on the Tuesdays gains as investors were waiting for Nvidias (NVDA) earnings report after the closing bell. That report showed blowout fourth-quarter results and upcoming product cycle, and NVDA initially jumped. But by Thursdays open that bullishness tanked as NVDA lost 5.5% on the day. Thursdays session also saw investors flock toward more cyclical areas of the market, with financials and industrials among the top performing sectors. Also, tensions around President Trumps tariff policies and U.S.-Iran relations remained in the back of investors minds. Before Fridays open, Januarys Producer Price Index data came in much hotter than expected. Core PPI increased a seasonally adjusted 0.8%, more than the 0.6% gain in December and well ahead of the Dow Jones consensus estimate for 0.3%. For the full year, core wholesale prices accelerated 3.6%, while the headline index posted a 2.9% gain. Both figures are well ahead of the Federal Reserves 2% inflation goal and suggest that rising prices are still a factor for the U.S. economy. After Fridays opening bell growing fears about the impact of artificial intelligence on specific industries and the overall economy returned. Those fears were exacerbated after Jack Dorseys fintech company Block said its laying off more than 4,000 employees nearly half of its workforce. From a technical perspective Friday marked Februarys last trading session, and the big news was that the S&P 500 was down for the month. Again, we remain in this range bound channel for the third month in a row. For next week the focus will be on Mideast tensions and its effects on the markets. While well probably see a decrease at Mondays open, hopefully the overall markets will be buoyed by the Metals and Energy sectors. For TSP TIPS we closed out February by returning to a 100% allocation in equities. That said, all three models are heavily weighted in the I fund, which made new record highs on Tuesday, Wednesday and Thursday. As always, well continue to monitor market conditions and recommend investment mix changes as needed.
Coming off last weeks gains, the S&P 500 had a down week closing at 6,878. Monday was a bearish day for the markets as AI concerns disrupted the markets with the S&P 500 down just over 1%. On Tuesday major stock averages rose as those AI fears dissipated, and the S&P 500 clawed back most of Mondays losses. On Wednesday stocks built on the Tuesdays gains as investors were waiting for Nvidias (NVDA) earnings report after the closing bell. That report showed blowout fourth-quarter results and upcoming product cycle, and NVDA initially jumped. But by Thursdays open that bullishness tanked as NVDA lost 5.5% on the day. Thursdays session also saw investors flock toward more cyclical areas of the market, with financials and industrials among the top performing sectors. Also, tensions around President Trumps tariff policies and U.S.-Iran relations remained in the back of investors minds. Before Fridays open, Januarys Producer Price Index data came in much hotter than expected. Core PPI increased a seasonally adjusted 0.8%, more than the 0.6% gain in December and well ahead of the Dow Jones consensus estimate for 0.3%. For the full year, core wholesale prices accelerated 3.6%, while the headline index posted a 2.9% gain. Both figures are well ahead of the Federal Reserves 2% inflation goal and suggest that rising prices are still a factor for the U.S. economy. After Fridays opening bell growing fears about the impact of artificial intelligence on specific industries and the overall economy returned. Those fears were exacerbated after Jack Dorseys fintech company Block said its laying off more than 4,000 employees nearly half of its workforce. From a technical perspective Friday marked Februarys last trading session, and the big news was that the S&P 500 was down for the month. Again, we remain in this range bound channel for the third month in a row. For next week the focus will be on Mideast tensions and its effects on the markets. While well probably see a decrease at Mondays open, hopefully the overall markets will be buoyed by the Metals and Energy sectors. For TSP TIPS we closed out February by returning to a 100% allocation in equities. That said, all three models are heavily weighted in the I fund, which made new record highs on Tuesday, Wednesday and Thursday. As always, well continue to monitor market conditions and recommend investment mix changes as needed.