Equities Fall in Another Volatile Week

Despite getting off to a good start, stocks wavered throughout much of last week, ultimately closing lower. Each of the benchmark indexes lost ground, with the S&P 500 finishing the week lower for the fifth time in the last six weeks after reaching record highs in mid-February. Several negative factors weighed on investors, including hotter-than-expected core consumer prices and a slowdown in consumer spending. Among the market sectors, only consumer discretionary, consumer staples and energy closed higher, with information technology dropping 2.1%. Bond yields ended the week where they began. Gold prices ended the week at a record high. The dollar index ended the week lower after reaching a three-week high earlier in the week.

February PCE Data Released

According to the latest information from the Bureau of Economic Analysis, personal income increased 0.8% in February. Disposable personal income (less personal income taxes) rose 0.9% last month. Personal consumption expenditures (PCE), a measure of consumer spending, increased 0.4%. The PCE Price Index, a preferred measure of inflation for the Federal Reserve, increased 0.3% in February. Excluding food and energy, the PCE Price Index increased 0.4%. Over the last 12 months, the PCE Price Index increased 2.5%. Excluding food and energy, the PCE Price Index rose 2.8% over the past 12 months.

Eye on the Week Ahead

The employment figures for March are out this week. February saw jobs increase by 151,000, while the unemployment rate ticked up to 4.1%.