The stock market has drowned near the lowest level in six months, as concerns about slowing economic growth and fear of how definitions affect the expectations that have rocked the investor’s confidence.
Last week, the S&P 500 (^GSPC) index decreased by approximately 2.3 %, while Dow Jones decreased by 3 %, or more than 1,300 points. The nasdaq technology (^IXIC) compound decreased by about 2.4 %. On Thursday, the S&P 500 officially entered a correction, as the analogy index fell by 10 % of the record on February 19.
Next week, the federal reserve and the health of the American economy will remain at the top of the investors. The central bank is expected to maintain a large interest rate when it announces the next monetary policy decision on Wednesday. The markets will focus on any evidence about when the central bank can lower prices again.
The release of retail sales on Monday will highlight the weekly list of scheduled economic data versions. On the corporate front, the quarterly results will be tracked from Nike (Nike), Fedex (FDX) and Micron (MU) after the bell on Thursday.
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The last sales process coincided with the market’s increasing concerns about slowing economic data, and pushing investors to the price of approximately three discounts in interest rates from the Federal Reserve in 2025.
But with inflation, it is still much higher than the Federal Reserve’s goal by 2 % and possible effects of the Trump administration tariff and other policies that are likely to enhance price increases, which is widely expected to leave interest rates unchanged on Wednesday.
The monitoring key will be the latest summary of federal reserves (SEP). This includes a “DOT plot”, which is planning policy makers’ expectations about where interest rates can go in the future, as well as a comment from the Federal Reserve Chairman Jerome Powell during his press conference.
When the Federal Reserve released the last DOT plot in December, the average federal reserve fund expectations were to end 2025 in the range of 3.75 % to 4 %, which reflects discounts on the basis of 25 this year, less than the market expectations.
Michael Gaben, a chief US economy in Morgan Stanley, said that with the uncertainty in the financial policy in influencing expectations, the Federal Reserve was expected to “transfer a heavy dose of patience.”
“president Powell is likely to appear optimistic with caution about the economy, but he indicates a cloudy look because uncertainty in politics is high,” Ghaben wrote.
The worst retail sales report per year was one of the first data points that began to re -connect the market to the growth expectations in the American economy during the past month.
On Monday morning, investors will take another look at whether the retail sales decreased by 0.9 % in January is the beginning of the slowdown in spending on consumers. Economists expect a recovery in the February numbers, as the consensus of retail sales increases by 0.6 %.
“The tightening of the belt in January has followed a relatively impressive holiday season in November and December, which was higher sales review,” wrote the Wales Vargo team of Economists led by Jay Prison in a memo on Friday. “The withdrawal in January may say more about the strong end of the 2024 holiday shopping season, instead of bending in the consumer spending.”
Looking at the last clouds in stocks amid growth concerns, strategists note that any signs of better economic growth can be an incentive for markets. On the other hand, any other tension can press the shares more.
David Coston, American stock expert in Goldman Sachs, wrote in a memorandum that included a group of their goal at the end of the year to 6200 of 6,500.
He was leading the march of the dramatic market last month by selling a large sale in the so -called “wonderful” technical stocks.
Nvidia (NVDA), alphabet (Googl, Googl), Amazon (Amzn), Meta (Meta), Apple (AAPL), and Microsoft (MSFT) are all about 20 % of its last highest in 52 weeks. Meanwhile, Tesla decreased by approximately 50 % of its height during the past year.
However, the stock mixture constitutes about 30 % of the maximum S&P 500 market, and not far from its peak in the middle of 30 % seen in 2024. As the last market procedure showed, its direction remains very important to where it heads the next market.
“In order for the market to rise from here, you need an expansion thesis, but you need the contribution of seven Maga to contribute,” Scott Crohnrte, USA, told Yahoo Finance.
Chroonert added that the “structural growth component” is still intact for the regiment that has led S& P 500 profits over the past few years. Brian Bilsky, the chief marketing strategy of BMO CAPITAL Markets, chanted Chroonert about the importance of the group.
“These technical stocks may have advanced a little bit,” Pilsky told Yahoo Finance: “These technical stocks may have advanced a little bit.” “But at the end of the day, these monster companies determine the growth path for the stock market in the United States. They will not disappear.”
Economic data: Retail sales month during the month, Feb (+0.6 % expected, -0.9 % before); Retail sales with the exception of the month of cars and gas during the month, February (+0.5 % expected, -0.5 % before); Retail Surnerying Group over the month, February (+0.4 % expected, -0.8 % before); NAHB Housing Index, March (42 expected, 42 before)
Profits: There are no expected noticeable profit versions.
Economic data: Housing begins a month within a month, February (+0.8 % expected, -9.8 % before); Building permits over the month, February (-1.6 % expected, -0.6 % before); Imported price index, February (-0.1 % expected, +0.3 % before)
Profits: Xpeng (xpev)
Economic data: FOMC interest rate decision (unchanged)
Profits: Five below (five), General Mills (GIS), SIGNET JEWELLERS (SIG), Williams-Sonoma (WSM)
Economic data: Initial unemployment claims, the week ending on March 15 (224.00 expected, 220,000 before); Outlook Philadelphia Business Outlook, March (10.3 expected, 18.1 before); Pioneer Index, February (-0.2 % expected, -0.3 % before), current home sales, February (-3.4 % expected, -4.9 % before)
Profits: Academy SPORTS and Outdoors (ASO), Darden Restaurants (DRI), Fedex (FDX), Land’s End (LE), Lennar (LEN), Micron (MU), Nike (Nike (Nike (Nike (Nike (Nike)
Friday
Economic data: There are no noticeable economic data versions.
Profits: Carlival Corporation (CCL), NIO (NIO)
Josh Chevir is a Yahoo financing correspondent. Follow it on x _joshschafer.
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