S&P 500 Rallies on Inflation Relief, Eyes Trump Inauguration
Market Overview
The S&P 500 (^GSPC) closed its best week since November 2023, logging a 3% gain, as investors took solace in softer-than-expected inflation data. The Nasdaq Composite (^IXIC) followed suit, rising 2.6%. The Dow Jones Industrial Average (^DJI) led the rally with a nearly 4% surge.
Trump Inauguration in Focus
The markets will be closed Monday in observance of Martin Luther King Jr. Day, with all eyes on President-elect Donald Trump's inauguration. Investors are closely monitoring his tariff and tax policies, which could impact American corporations.
Earnings Season in Full Swing
A busy earnings season continues this week, with 43 S&P 500 companies reporting, including Netflix (NFLX), United Airlines (UAL), Johnson & Johnson (JNJ), and 3M Company (MMM). Analysts expect strong earnings growth of 12.5% year-over-year.
Fed Hike Debate on Pause
A hotter-than-expected December jobs report had raised concerns about potential Fed rate hikes. However, cooler inflation data eased those fears, with the Fed expected to remain on hold for the foreseeable future.
Market Calendar
* Monday: Markets closed for Martin Luther King Jr. Day
* Tuesday: Earnings: Netflix, 3M Company, Capital One, Charles Schwab
* Wednesday: Earnings: Alcoa, Abbott Labs, Johnson & Johnson, Procter & Gamble
* Thursday: Earnings: American Airlines, Alaska Airlines, CSX Corporation
* Friday: Earnings: American Express, First Citizens BancShares, NextEra Energy, Verizon