The S&P 500 (SP500) on Friday shed 2.67% so that the week shortened by vacation settles at 3,970.04 points, registering losses in three of the four sessions. Your Companion SPDR S&P 500 Trust ETF (NYSEARCA:SPY) also fell 2.67%.
This was the benchmark’s worst weekly performance since early December 2022. It was also the third straight week of losses for the gauge.
The focus this week was dominated by economic data and concerns about the path forward for the Federal Reserve on rate hikes. Following a President’s Day holiday, US stocks tumbled on Tuesday after disappointing forecasts from retail giants Walmart (WMT) and Home Depot (HD) hit sentiment.
The minutes of the February Fed’s monetary policy committee meeting were released on Wednesday. The minutes showed that some Fed policymakers favored raising the benchmark rate by 50 basis points at the last meeting as the central bank struggles to control inflation.
On Thursday, the S&P 500 (SP500) managed to avoid posting a five-day losing streak due to a rally late in the session. However, the index fell again on Friday after more data showed a higher-than-expected rise in inflation, this time in the form of the January personal consumption expenditures price index, which rose more than expected. The same report also showed an increase in consumer spending. These data came on the back of stronger-than-expected Consumer Price Index and Producer Price Index reports last week.
The numbers have raised concerns that the Fed would have to stick to its aggressive tightening stance for longer than previously thought to bring down inflation.
The weekly economic calendar also saw a revised estimate for fourth-quarter GDP growth and an unexpected drop in weekly jobless claims.
Turning to earnings, the week saw reports from chip giant NVIDIA (NVDA), medical device maker Medtronic (MDT), Chinese tech giants Baidu (BIDU) and Alibaba (BABA), dating app Bumble (BMBL) and the electric vehicle manufacturer Nikola (NKLA).
Next week we’ll see reports from other retailers such as Target (TGT) and Macy’s (M), which should shed more light on the state of consumer spending during the all-important holiday sales quarter. The Dow 30 Salesforce (CRM) component is also available.
As for the weekly performance of the S&P 500 (SP500) sectors, all 11, with the exception of Energy, ended in the red. Communication services and consumer discretionary fell more than 4%. See below for a breakdown of weekly sector performance, as well as the corresponding SPDR Select Sector ETFs from the close on February 17 to the close on February 24:
#1: Energy +0.17%and the Energy Select Sector SPDR ETF (XLE) +0.20%.
#2: Materials -0.13%and the SPDR Materials Select Sector ETF (XLB) -0.14%.
#3: Consumer Staples -1.40%and the SPDR (XLP) Select Consumer Staples Sector ETF -1.32%.
#4: Finances -1.97%and the SPDR Select Financials ETF (XLF) -2.01%.
#5: Health Care -2.67%and the Select Health Care Sector SPDR ETF (XLV) -2.64%.
#6: Information Technology -2.71%and the Technology Select Sector SPDR ETF (XLK) -2.67%.
#7: Industrial -2.73%and the Select Industrial Sector SPDR ETF (XLI) -2.64%.
#8: Utilities -2.79%and the Utilities Select Sector SPDR ETF (XLU) -2.73%.
#9: Real Estate -3.78%and the Real Estate Select Sector SPDR ETF (XLRE) -3.74%.
#10: Communication Services -4.37%and the Select Communication Services Sector (XLC) SPDR Fund -3.81%.
#11: Consumer Discretionary -4.44%and the Select Sector Consumer Discretionary SPDR ETF (XLY) -4.46%.
Below is a chart of the YTD performance of the 11 sectors and how they fared against the S&P 500. For investors looking ahead of what’s going on, take a look at Seeking Alpha Catalyst Watch for a breakdown of the actionable events of the coming week that stand out. .
