Weekly Market Update

Key Highlights:
1. US Stocks Reach Fresh Records: Despite concerns over Federal Reserve independence, US stocks notched fresh records on Monday, with the Dow Jones Industrial Average (^DJI) rising 0.2%, the S&P 500 (^GSPC) gaining 0.2%, and the Nasdaq Composite (^IXIC) adding 0.3%.
2. Fed Investigation: The Justice Department's investigation into Fed Chair Jerome Powell has raised concerns about the Fed's independence, with markets reacting to the news.
3. Earnings Season Begins: JPMorgan (JPM) kicked off earnings season with underwhelming results, leading to a decline in its shares and those of other big banks.
4. Inflation Data: The Consumer Price Index (CPI) report showed that inflation remained steady last month, which supported bets on medium-term Fed easing.
5. Oil Prices Rebound: Oil prices reversed their losses after President Trump said the killing of protesters by the Iranian regime had stopped, and there was no plan for executions or an execution.

Market Outlook:
• Tom Sosnoff, a veteran trader, expressed concerns about market valuations, stating that stocks are fully priced and may experience a 10-15% sell-off if momentum reverses.
• The forward price-to-earnings ratio (PE) for the S&P 500 is 22 times, which is well above the 10-year average of 18.7 times.

Actionable Tips:
• As earnings season progresses, investors may want to keep an eye on bank stocks and their performance.
• With inflation data showing steady readings, it's essential to consider the Fed's next move in interest rates.
• Given the geopolitical tensions, including those with Iran, markets may remain volatile.