S&P 500: The S&P 500 Pulled Back Slightly For the Week as Non-Voting FOMC Members Advocate for Higher Rates

 


The S&P 500 was down 0.28% for the week despite that January retail sales (3.0% vs. 1.9% est.) came in well above expectations. Both January CPI (6.4% Y-O-Y vs. 6.2% est.) and PPI (0.7% vs. 0.4% est.) were disappointing.

Federal Reserve officials immediately weighed in on this week's inflation data. "St. Louis Federal President James Bullard said Thursday that he 'was an advocate for a 50-basis-point hike and … argued that we should get to the level of rates the committee viewed as sufficiently restrictive as soon as we could.' Cleveland Fed President Loretta Mester echoed Bullard’s hawkishness, saying she wants higher rate increases. Neither Mester nor Bullard vote this year on the Federal Open Market Committee, ..." per CNBC.

The 10-year U.S. Treasury yield traded at 3.82% on Fri, up 8 basis points for the week. The good news is that the 50-day EMA just crossed over the 200-day EMA, meaning a golden cross pattern has emerged.

The PCE index, closely watched by the Fed, will be released next Friday. Let's see if the S&P 500 can push higher towards 4,200 or gets pushed back to retest its 50-day EMA at around 4,000.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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