S&P 500 Logs Weekly Loss As Investors Digest Latest Inflation Data – SPDR S&P 500 (ARCA:SPY)
February 24, 2023 4:01 p.m | 2 minutes read
The SPDR S&P 500 ETF Trust (NYSE:SPY) traded lower in a volatile four-day week as the latest batch of inflation data rocked Wall Street.
On Friday, the Bureau of Economic Analysis reported that the personal consumption price index rose 5.4% year-on-year in January, up from 5.3% in December. The core PCE, which excludes volatile food and energy prices and is the Fed’s preferred inflation gauge, rose 4.7%, beating economists’ estimate of 4.3%.
Related Link: ‘Big Upside Surprise’: Pundits react to 4.7% PCE core inflation as interest rate expectations continue to rise
In their latest meeting minutes released on Wednesday, Federal Reserve members said inflation remained “well above” their 2% target and will likely require further rate hikes to bring it down. The Fed also noted that the US labor market “remained very tight, contributing to continued upward pressure on wages and prices.”
On Thursday, Fidelity Investments reported that the average 401(k) retirement account balance fell 23% in 2022 to $103,900. Fidelity reported that its total 401(k) savings rate was 13.7% in the fourth quarter, below the company’s recommended savings rate of 15%.
Boeing Co (NYSE:BA) Shares fell on Friday after the company again halted deliveries of its 787 Dreamliner to conduct additional analysis on a fuselage component. Boeing resumed deliveries of the 787 Dreamliner in August 2022 after a two-year hiatus to address manufacturing defects.
Related Link: Boeing Suspends Deliveries of 787 Dreamliners Again: What You Need to Know
Apply the brakes: Shares of the online used car dealer Carvana Co (NYSE:CVNA) declined 20% on Friday after the company reported a 24% decline in revenue and an $806 million net loss in the fourth quarter.
Investors will see more quarterly reports in the coming week target company (NYSE:TGT) on Tuesday, Salesforce Inc (NYSE: CRM) on Wednesday and Kroeger Co (NYSE:KR) and Dell Technologies Inc (NYSE:DELL) on Thursday.
According to FactSet, analysts expect companies in the S&P 500 to report negative overall earnings growth for the first two quarters of 2023.
Economic numbers: Investors will get key economic updates on Monday, when the Federal Reserve’s governor is Federal Reserve Philip Jefferson delivers a speech to Harvard University students and on Wednesday when the Institute for Supply Management releases its Manufacturing Purchasing Managers Index (PMI) for February.
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