On Tuesday, January 10, the S&P 500 Index closed down 0.33%, while the Dow Jones Industrial Average rose 0.10%, reaching a new all-time high. The Nasdaq 100 Index fell 0.56%. Key economic reports revealed that December retail sales were unchanged, lower than the expected 0.4%, and the Q4 employment cost index rose by 0.7%, below the forecast of 0.8%, marking the smallest increase in 4.5 years.
Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan suggested that rate cuts may be on hold, citing the need for patience in assessing the economic impact of previous reductions. The market is currently pricing in a 23% chance of a 25 basis point cut at the next Fed meeting on March 17-18.
This week, attention will shift to upcoming corporate earnings and economic data, including nonfarm payrolls expected to rise by 68,000 and the unemployment rate remaining at 4.4% for January. Additionally, existing home sales are projected to decline by 4.3% to 4.16 million.
