The S&P 500 Index (SP500) on Friday add 1.90% ended the week at 4,045.54 points, up three out of five sessions. SPDR S&P 500 Trust ETF Its accompanying (NYSEARCA:spy) up 1.97% in Week.
with On a weekly basis, the benchmark index managed to break through a three-week losing streak. The index also closed a volatile February with a down nearly 3% on Tuesday, weighed down by concerns about a Federal Reserve rate hike fueled by strong economic data.
That pattern initially continued this week. However, on Thursday, a Fed official said the central bank may pause rate hikes this summer, which has helped hold up market. that positivity bring over on Friday and helped the S&P 500 (SP500) to its weekly increase.
Market participants this week have revised their outlooks towards the top terminal rate currently at at least 5.5%, with a portion of the market even weighing the 6% level. Traders seem to have become more comfortable with the direction of the central bank.
Meanwhile, this week’s economic data shows both the economy is growing strongly and the labor market is tightening. With the Fed in a hawkish mood, any number pointing to a strong economy raises concerns about higher interest rates.
On Wednesday, ISM’s measure of production activities for February rose for the first time in six months, although still in contraction territory. Above all, the S&P manufacturing PMI Roses for February. Reports suggest that the economy is still strong and the cooling effect of the rate hike is yet to be felt.
On Thursday, the number of Americans applying Initial unemployment claim sudden slip. Moreover, the fourth quarter unit labor cost increased, even as average yields marked the biggest annual decline in nearly 50 years. The numbers suggest continued resilience in the labor market.
The weekly economic calendar also sees a surprising drop in February PMichicago and the Conference Board’s measure of monthly consumer confidence.
This week also saw the end of fourth-quarter earnings season. Notable companies that have reported their results include retail giant Target (TGT) and Costco (VALUE), department store chain Macy’s (m), electric vehicle maker Rivian Automotive (RIVN), home appliance retailer Lowe’s (SHORT) and cloud computing company Salesforce (CRM).
Moving on to the weekly performance of the S&P 500 (SP500), nine out of 11 sectors ended in the green, led by Media and Materials Services. Utilities and Consumer Essentials are two sectors that end in the red. See the breakdown below for the weekly performance of the sectors and their associated SPDR Select Sector ETFs from February 24 close to the March 3 close:
#1: Materials +4.02%and SPDR Sector Selective Materials ETF (XLB) +4.20%.
#2: Communication Service +3.27%and the SPDR Sector Select Communications Services Fund (XLC) +2.85%.
#3: Industry +3.25%and the Industrial Options SPDR ETF (XLI) +3.35%.
#4: Energy +2.94%and SPDR sector select energy ETF (XLE) +3.07%.
#5: Information Technology +2.93%and SPDR Sector Selective Technology ETF (XLK) +2.98%.
#6: Consumer discretion +1.61%and the Consumer Discretionary Sector SPDR ETF (XLY) +1.70%.
#7: Real Estate +1.55%and the SPDR Sector Select Real Estate ETF (XRE) +1.63%.
#8: Finance +0.79%and the financial options industry SPDR ETF (XLF) +0.93%.
#9: Take care of your health +0.51%and the Healthcare Sector SPDR ETF (XLV) +0.51%.
#10: Consumer staples -0.41%and the Consumer Staples Select Sector SPDR ETF (XLP) -0.23%.
#11: Utilities -0.69%and the SPDR Utilities Sector Selection ETF (XLU) -0.54%.
Here’s a chart of the year-to-date performance of 11 sectors and how they stack up against the S&P 500. For investors looking to the future of what’s happening, take a look. Search Alpha Catalyst Watch for a breakdown of next week’s actionable highlights.
