Weekly Economic Update: March 3, 2025

March 3rd, 2025

The Markets (as of market close February 28, 2025)

The markets experienced a volatile week, ultimately closing mostly lower. Of the major stock indexes, only the Dow managed to eke out a weekly gain. The week ended with stocks posting gains, despite a tense meeting between U.S. and Ukrainian leaders. Traders wrestled with the uncertain economic impact of proposed U.S. tariffs, inflationary pressures that refuse to subside, and geopolitical challenges. Treasury yields declined as bond prices rose. Crude oil prices dipped lower. The dollar index rose, while gold prices declined.

Last Week’s Economic News

- According to the Bureau of Economic Analysis, gross domestic product rose 2.3% in the fourth quarter of 2024. Both personal income and disposable (after-tax) personal income advanced in January, according to the same source.
- The international trade in goods deficit was $153.3 billion in January. New orders for manufactured durable goods increased in January after decreasing in each of the previous two months.
- Sales of new single-family homes in January were 10.5% below the prior month’s total and 1.1% below the January 2024 estimate. The median sales price of new houses sold in January 2025 was $446,300. The average sales price was $510,000. The inventory of new houses for sale in January represented a supply of 9.0 months at the current sales pace.
- The national average retail price for regular gasoline was $3.125 per gallon on February 24.
- For the week ended February 22, there were 242,000 new claims for unemployment insurance, an increase of 22,000 from the previous week’s level.

Eye on the Week Ahead

The jobs data for February is available this week. January saw employment increase by 143,000, while average hourly earnings ticked up 0.5% for the month and 4.1% over the last 12 months.

Have a nice week!

Sincerely,