Weekly Market Report for February 27-March 3, 2023
- Markets
- S&P 500 +1.4%
- Dow Jones Industrial Average +3.1%
- NASDAQ +1.5%
- Russell 2000 +1.4%
Domestic equity markets finished the week higher on declining U.S. home prices and positive services data. According to Redfin, home prices in the U.S. for February fell at the highest clip since 2012. Since housing makes up over 40% of the consumer price index (CPI) now, any decreases to home prices should reduce overall inflation. Stock markets welcomed this news. February data from the Institute of Supply Management (ISM) showed pricing pressures are easing as they relate to services. The ISM publishes data related to supply chains. Lower prices lead to lower inflation, which our U.S. equity markets appreciate. Even though the 10-year U.S. Treasury yield surged above 4% and hawkish (inclined to raise rates) Fedspeak followed, the housing and services numbers ran the show. This was a positive week for U.S. equity markets.