Stocks started the week on a high note but ended with a whimper on Wall Street. The S&P 500 index reached a record high close for the 17th time this year, despite a higher-than-expected rise in consumer prices. Investors were optimistic about a potential interest rate cut by the Federal Reserve, leading to record highs for gold and Bitcoin.
However, mid-week saw a shift in sentiment as concerns about inflation resurfaced. The Dow, S&P 500, and Nasdaq Composite all ended the week lower as the latest Producer Price Index revealed a spike in wholesale inflation due to rising energy prices.
In addition to the stock market fluctuations, airline stocks took a hit this week due to ongoing safety issues at Boeing. Southwest Airlines announced a decrease in expected Max 8 deliveries from Boeing, leading to a drop in their shares. The NYSE Arca Global Airline index is on track to end the week lower as well.
Despite the market volatility, experts like Liz Young from SoFi point out that the S&P 500 has not seen a significant decline in over a year, indicating the market’s resilience. Investors will be closely watching upcoming economic data and corporate events, including Nvidia’s AI conference and the Federal Reserve’s policy meeting next week.
