- The S&P 500 index is down 3.9% year-to-date
- Gold futures surpassed $3,000.00 per ounce for the first time ever
- The core CPI fell to a 3.1% annual rate in February
Top Three Market Headlines
U.S. Stocks Enter Correction Territory: The S&P 500 index last week registered a correction, defined as a 10% decline from recent highs. The index closed last Thursday at 5,521.52, down 10.1% from its close on February 19th. The S&P managed to rebound 2.1% on Friday but still finished off more than 2% on the week, which left it down nearly 4% on the year. The Nasdaq Composite index has endured an even weaker run over the same period, officially falling into a correction last Monday and losing nearly 14% from February 19th through last Thursday. After rebounding on Friday, the Nasdaq was off nearly 8% on a year-to-date basis. Similarly, the Russell 2000 index also entered a correction last Monday and was down more than 8% on the year through Friday.
Gold Hits New All-Time Highs: While stocks have struggled of late, gold has rallied to new highs. Futures prices for the metal gained 3% last week and pushed above $3,000.00 per ounce for the first time ever. On the year, gold futures have surged nearly 14%. Investors have piled into gold as a safe haven asset amid the turmoil in other financial markets and escalating economic uncertainty. Continued central bank demand has also been a driver, with China building its bullion reserves for a fourth straight month in February.
Inflation Cools in February: The U.S Department of Labor reported last week that the Consumer Price Index (CPI) increased 0.2% in February from the prior month, the slowest rate in the last four months. Compared to the prior year, the CPI rose 2.8%, down from a 3.0% pace in January. The "core" CPI, which excludes food and energy items, also increased by 0.2% in February; the annual core rate fell to 3.1%, the lowest reading since April 2021. Similar trends were seen in the Producer Price Index (PPI), which was flat in February versus the prior month and up 3.2% over the prior year, down from a 3.7% rate in January.