After declining for three weeks in a row, the major U.S. stock indexes regained their footing, with the NASDAQ surging more than 7%, the S&P 500 adding more than 6%, and the Dow rising more than 5%. The results marked a near mirror-image reversal from the previous week when the S&P fell into a bear market as it tumbled more than 20% from a recent high in early January.
U.S. mortgage rates remained volatile as the homebuying season ramped up, with the average rate for a 30-year fixed-rate mortgage climbing to 5.81%, according to the latest weekly report from Freddie Mac. A year ago, the average was around 3.00%; the last time the average was at today’s level was in 2008.
A monthly survey of U.S. corporate purchasing managers showed that growth in economic activity across manufacturing and services fell to the lowest level in five months. In the eurozone, a similar survey showed that growth fell to the lowest in 16 months as rising interest rates weighed on the economy.
Top News to Watch this Week – Inflation Report Ahead
A report scheduled to be released on Thursday will be closely watched for any signs that U.S. inflation may have peaked. The government will update its Personal Consumption Expenditures Price Index, the Fed’s preferred gauge for tracking inflation. The latest report showed that PCE inflation moderated at an annual rate of 6.3%, although it remained close to the highest level in four decades.
We will continue to provide updates and monitor the markets closely. In the meantime, if you have any questions or concerns, please do not hesitate to contact us.