Wall Street saw momentum ebb and flow throughout last week, with stocks ultimately closing lower for the fourth week in a row. Traders were influenced by a barrage of commentary about inflation and tariffs. Despite a strong close to the week, the overall decline in equities has been notable. In less than a month, the benchmark indexes moved into correction territory. Bond yields rose from 4.21% at the start of the week to 4.30% last Friday. Crude oil prices ticked higher by week’s end as geopolitical uncertainty, particularly over the Ukraine war, continued to weigh on supply and demand concerns.
Last Week’s Economic News
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According to the latest information from the Bureau of Labor Statistics, consumer price growth slowed in February.
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The Producer Price Index was unchanged in February after advancing 0.6% in January. For the 12 months ended in February, the PPI rose 3.2%.
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The number of job openings rose by 232,000 to 7.7 million in January, according to the latest Job Openings and Labor Turnover Summary.
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The government deficit for February was $307 billion, well above the January deficit of $129 billion and slightly over the February 2024 deficit of $296 billion. Through the first five months of the fiscal year, the deficit sits at $1.147 trillion, over 38% higher than the deficit over the same period last fiscal year. So far this year, government receipts, at $1.893 trillion, are marginally above the figure from last fiscal year. Government expenditures, totaling $3.039 trillion, are over 13% higher than expenditures over the same period last year.
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The national average retail price for regular gasoline was $3.069 per gallon on March 10, $0.009 per gallon below the prior week’s price and $0.307 per gallon less than a year ago.
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For the week ended March 8, there were 220,000 new claims for unemployment insurance, a decrease of 2,000 from the previous week’s level.
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Eye on the Week Ahead
The Federal Open Market Committee meets this week. While it is unlikely that the Committee will adjust the federal funds rate at this time, investors will pay particular attention to the Committee’s assessment of the economy and whether it gives any indication of the timing of future rate changes.
Have a nice week!
Sincerely,
Robert G. Carpenter