Weekly Market Update

Weekly Market Update

As we begin this week, investors are still trying to wrap their heads around President Trump's latest tariff threats and their potential impact on the stock market.

Key Takeaways:

1. Tariffs Continue to Dominate Headlines: The Dow Jones Industrial Average (^DJI) added nearly 0.4% after its worst loss in nearly four weeks, while the S&P 500 (^GSPC) rose roughly 0.6%. Investors weighed Trump's pledge to introduce an additional 25% tariff on steel and aluminum from all countries.
2. Earnings Season Continues: This week, 78 S&P 500 companies are set to report earnings, including McDonald's (MCD), Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB).
3. Inflation Concerns Linger: The January Consumer Price Index reading due on Wednesday will be closely watched for clues, alongside the week's updates on retail sales.
4. Stock Market Remains Resilient: Despite looming threats of tariffs, US stocks continue to trade near record highs.

This Week's Economic Calendar:
• January Consumer Price Index (CPI) reading on Wednesday
• Weekly Retail Sales data on Friday

Market Insights:

The stock market is getting used to Trump's trade salvos. Some on Wall Street say many now see the announcements as a negotiation tactic only. However, markets are concerned that the growing list of tariff hikes could drive up inflation.

Stock Market Outlook:

The long-term outlook for the stock market remains favorable, bolstered by expectations for years of earnings growth. Demand for goods and services is positive, and the economy continues to grow.

What's Next?

Stay tuned for further updates on the tariff situation and how it affects the stock market. Earnings season continues, with 78 S&P 500 companies set to report earnings this week.