Equity Markets Fell in Volatile Week

The markets experienced a volatile week, ultimately closing mostly lower. Among the major benchmark indexes, only the Dow managed to eke out a weekly gain. The week ended with stocks posting gains on Friday, despite a tense meeting between President Trump and Ukrainian President Zelenskyy. Investors wrestled with the uncertain economic impact of President Trump’s proposed tariffs, inflationary pressures that refuse to subside and geopolitical turmoil. Treasury yields declined as bond prices rose. Crude oil prices dipped lower. The dollar index rose, while gold prices declined.

Personal Income Advanced, Consumer Spending Declined

Both personal income and disposable (after-tax) personal income advanced 0.9% in January, according to the latest data from the Bureau of Economic Analysis. Personal consumption expenditures (PCE), a measure of consumer spending, fell 0.2% in January. The PCE Price Index for January increased 0.3%. Excluding food and energy, the PCE Price Index increased 0.3%. From the same month one year ago, the PCE Price Index for January increased 2.5%, while the PCE Price Index excluding food and energy increased 2.6%.

Eye on the Week Ahead

The jobs data for February is available this week. January saw employment increase by 143,000, while average hourly earnings ticked up 0.5% for the month and 4.1% over the last 12 months.