S&P 500 (^gspc) It was stuck at record highs last week as new inflation data signaled good news about the Federal Reserve’s plan to cut interest rates.
This week, Nasdaq composites (^ixic) It rose more than 2.5%, and the S&P 500 added under 1.5%. Dow Jones Industrial Average (^dji) Approximately 0.5% has been added.
The company’s revenue season will be headlined by a quarterly report from Alibaba (Baba) and Walmart (WMT). Overall, 46 S&P 500 companies will announce their results in trading week, which has been shortened to holidays.
The next week will bring about a quieter flow of economic news. Minutes from the Federal Reserve January meeting, updates on activities in the manufacturing and services sector, and consumer sentiment, will focus on investors.
The market will be closed on Monday due to President’s Day.
Last week, two Fresh inflation measurements In January, prices were shown to have risen more than Wall Street had expected, but economists found positive news about the market and the Federal Reserve details.
Evaluating categories from both the consumer price index (CPI) and producer price index (PPI) feeding into the Fed’s preferred inflation gauge, the Personal Consumption Expense (PCE) index, could lead to a rise in January prices. It seems expensive.
Economists expect “core” PCEs, which exclude food and energy from the volatile category, are likely to reach 2.6% in January, from 2.8% seen in December. This has resulted in the market price of one or two interest rate cuts from the Fed in 2025, with each Bloomberg data, changing little from the previous week. And importantly, many economists believe the Fed is closer to cutting interest rates than hiking interest rates.
“I think the standard for the Fed hike will remain high,” Morgan Stanley’s chief US economist Michael Gagun wrote in a note to his client on Friday. “The evolution of inflation expectations and the second impact from tariffs on service inflation remain important emphasis. However, for now, the distribution of Fed policy outcomes has been in the direction of rate reduction, as opposed to hiking. I think it will be distorted.”
Investors are looking to the Fed minutes from the January meeting, scheduled to be released Wednesday at 2pm for more clues on how central banks think about moving forward with interest rates.
The S&P 500 has returned to record highs, but this time it’s not just a handful of tech stocks. Yes, Meta (Meta) Shares have risen for the 20th consecutive day, with profits of over 25% this year contributing to the S&P 500’s increase. However, Meta and Amazon (amzn) The only epic 7 high-tech stocks to date in 2025 topped the S&P 500. Meanwhile, the number of companies exceeding the 4% profits in the index has skyrocketed to start 2025.
As of the end of Wednesday, 48% of the S&P 500 had surpassed the index in 2025, exceeding the median 25 years and 29% seen last year. As Richard Bernstein CEO of Richard Bernstein, pointed out Yahoo Finance’s latest chartbookthe past two years have shown that the number of stocks outperformed the index in 25 years is the lowest.
Freedom Capital Market Chief Global Strategist Jay Woods told Yahoo Finance that the number of stocks participating in the current rally shows strength within the bull market, but the benchmark index itself fires higher. It doesn’t exactly mean it.
“If we received bad reports from Nvidia in a few weeks (February 26th), we could see the market drop.” Woods said. “But we’re still watching the rotation, but it’s not in the name that actually makes the headlines.”
Many of the epic seven weren’t market leaders this year, but ifolia is alive and looking good in the market. AI software company Palantir (fungi) was the top performer of the 2025 S&P 500, rising over 55%, followed by the super microcomputer (SMCI), which has also increased by more than 50%.
Other aggressive moves in AI highlighted the theme on Friday. We have disclosed the latest Equity Holdings. Serve Robotics AI Chip Giant Groove LocationServe) and Soundhound (Soun). Both stocks were sold on the news.
Meanwhile, the shares of Weride (world), in China’s autonomous driving play, stock has almost doubled.
The market is closed for President’s Day.
Tuesday
Economic data: Teikoku Manufacturing, February (-1 forecast, before -12.6); NAHB Housing Market Index, February (47, forecast, before 47)
Revenue: Devon Energy (DVN),oxy (oxygen), Toll Brothers (tol))
Wednesday
Economic data: MBA Mortgage Application, week ending February 14th (2.3% before); Homes begin several months before the month of January (-7% is expected, +15.8% before). The building will allow January spares (-2.3%, -0.7% or earlier). FOMC meeting minutes, federal meeting in January
Economic data: First unemployment claim, week ending February 15th (previously 213,000); Philadelphia Fed Business Outlook, February (previously 25.4, 44.3). Reading Index, January (predicted 0%, -0.1% before)
Economic data: S&P Global US Manufacturing, February Reserve (51.2 PRIOR); S&P Global US Services PMI, February Reserve (52.9 PRIOR); S&P Global US Composite PMI, February Reserve (52.7 PRIOR); University of Michigan Sentiment, Final February ( 68.7 before)
Revenue: There are no notable revenue releases.
Josh Schafer is a Yahoo Finance reporter. Follow him with x @_joshschaffer.
