Price Return Last Week
S&P 500 (2.3%) S&P Mid Cap (2.0%) Russell 2000 (1.5%)
MSCI EAFE (1.2%) MSCI EM (0.8%)
10 Yr US Treasury Rate – fell from 4.32% to 4.31%
Source: Refinitiv Eikon
Recent News
Stock Market Correction – The S&P 500 officially entered correction territory on Thursday, falling over 10% from its high in February. On average, the market has a correction every other year with an average decline of 14% and lasts about four months. The last correction in the U.S. was October 2023, a year where the S&P 500 returned 26%.
Source: The Associated Press, Thomson Reuters
Steel and Aluminum Tariffs – The Trump administration began imposing a 25% tariff on all steel and aluminum imports on Wednesday. As a response, the European Union announced retaliatory tariffs on various U.S. products such as bourbon whiskey and motorcycles that are set to take effect in April. The European tariffs would impact approximately $28 billion in U.S. exports, the same value as the EU estimates would be impacted by the U.S. steel and aluminum tariffs.
Source: The Wall Street Journal
Core CPI – Feb: 0.2% (Reuters Poll est. 0.3%) Jan: 0.4%
The year-over-year change in core inflation was reported at 3.1%, down from 3.3% in the month prior. Part of the change can be attributed to airline fares that were down 4% versus January. Shelter costs continue to ease, rising 4.2% over the last twelve months, the smallest increase since 2021.
Source: Refinitiv Eikon, The Wall Street Journal
Q4 Earnings – Through the end of February, 97% of companies in the S&P 500 had reported Q4 earnings. Of the companies that have reported, the blended year-over-year earnings growth rate was 18.2%, representing the highest growth rate since 2021. Overall, 75% of companies beat earnings estimates, equaling the 10-year average of 75%. Earnings growth estimates for 2025 are currently at 12.1%.
Source: FactSet
Egg Prices – Avian flu across the U.S. has caused a shortage of eggs pushing the price a dozen up nearly 60% compared to a year ago. The surge in egg prices has caused an increase in the number of people caught smuggling eggs from across the border. Parts of the Texas/Mexico border have seen egg interceptions increase by over 50% as the price of a dozen of eggs in Mexico is typically less than $2.
Source: USA Today, The Wall Street Journal
Upcoming Events
3/17 – Retail Sales
3/19 – Fed Meeting
3/20 – Notable Earnings Reports: Accenture, Darden Restaurants, Nike, FedEx, Micron
Source: Refinitiv Eikon
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