The S&P 500 (^ GSPC) faced a record level last week while new inflation data marked good news on the drop in rates of the federal reserve.
For the week, the NASDAQ composite (^ iIxixe) increased by more than 2.5%, while the S&P 500 added just under 1.5%. The industrial average of Dow Jones (^ DJI) added approximately 0.5%.
The coming week will bring a quieter flow of economic news. A few minutes from the January meeting of the Federal Reserve will be at the center of investors, in parallel with the updates on activity in the manufacturing and services sector and on the feeling of consumers.
The company’s profits season is rolling, titled by quarterly reports from Alibaba (Baba) and Walmart (WMT). Overall, 46 S&P 500 companies should publish the results during the holiday negotiation week.
The markets will be closed on Monday for the presidents day.
Last week, two new inflation readers for the month of January showed that prices had increased more than Wall Street did not expect, but economists found positive news for the markets and the federal reserve in detail.
The key categories of the consumer price index (IPC) and the price of producers’ prices (PPI) fuel the Fed preferred inflation gauge, the personal consumer expenses (PCE). When evaluating these categories, it seems that price increases have probably slowed down in January.
Economists now expect the PCE “basic”, which excludes the volatile categories of food and energy, will probably light up to 2.6% in January, against 2.8% observed in December.
This leaves market prices in one or two Fed interest rate drops in 2025, little compared to the previous week, according to Bloomberg data. And above all, many economists still think that the Fed is closer to reducing interest rates rather than hiking them.
“We believe that the Fed hiking bar remains high,” the chief economist of the United States Morgan Stanley wrote on Friday in a note on Friday. “The evolution of the expectations of inflation and the second -round effects of prices on the inflation of the services remain key points of the accent. But, for the moment, we always think that the distribution of political results of The Fed is part of the rate reductions as opposed to increases. “
Investors will look a few minutes from the Fed meeting in January, which will be released on Wednesday at 2 p.m., for clues on his reflection on the way for interest rates.
The S&P 500 is back near a record, and this time, it is not a handful of technological stocks. Yes, the meta stock (META) increased for 20 consecutive days, and its gain of more than 25% this year contributed to the increase in S&P 500. But Meta and Amazon (AMZN) are the only technological actions of seven Magnificent to have outperformed the S&P 500 so far in 2025. Meanwhile, the number of companies exceeding the 4% gain in the index has skyrocketed to start the year.
From the fence on Wednesday, 48% of the S&P 500 surpasses the index in 2025, in accordance with the median of 25 years and above the 29% seen last year. As the CEO of Richard Bernstein Advisors, Richard Bernstein, pointed out in the latest book on Yahoo Finance’s card, the last two years had marked the lowest number of stocks outperforming the index in 25 years.
The number of shares participating in the current rally shows the Haussier market strength, but that does not exactly mean that the reference index itself will draw more, the world Freedom Capital Markets, Jay Woods.
“If we get a bad report from Nvidia in a few weeks [on Feb. 26]So we could see the market below, “Woods told Yahoo Finance.” But we will always see the rotation, but not in the names that really make the headlines. “”
While many of the Magnificent Seven have not been the market leaders this year, Ai Euphoria seems to be alive in the markets. The AI Palant (PLTR) software company is the most efficient in S&P 500 in 2025, increasing by more than 55%, followed by Super Micro Computer (SMCI), also more than 50%.
Friday, aggressive movements in other AI games underlined this theme while investors quickly dropped shares and bought positions in others after Nvidia revealed his latest actions. The giant of the AI chip has abandoned the servant robotics (SERV) and Soundhound (SOUN) positions. The two actions sold in the news.
Meanwhile, the actions of WRIDE (WRD), a Chinese autonomous driving game, saw its stock almost double.
The markets are closed for the presidents day.
Tuesday
Economic data: Manufacturing Empire, February (-1 expected, -12.6 before); NAHB housing market index, February (47 expected, 47 before)
Gains: Devon Energy (DVN), Oxy (Oxy), Toll Brothers (Tol)
Wednesday
Economic data: MBA mortgage requests, a week ending on February 14 (2.3% before); The accommodation begins one month to another, January (-7% expected, + 15.8% before); Permits to build one month to another, January preliminary (-2.3% expected, -0.7% before); Minutes of the FOMC meeting, meeting of the January Fed
Economic data: Initial unemployment claims, week ending on February 15 (213,000 before); Philadelphia Fed Business Outlook, February (25.4 expected, 44.3 before); First -plan index, January (0% expected, -0.1% before)
Economic data: S&P Global US Manufacturing, February preliminary (51.2 before); S&P Global US PMI services, February preliminary (52.9 before); S&P Global US Composite PMI, February preliminary (52.7 before); Feeling of the University of Michigan, February final (68.7 before)
Gains: No notable income version.
Josh Schafer is Yahoo Finance journalist. Follow him on x @_joshschafer.
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