Stocks followed a familiar pattern this week. To start the week, tariff fears caused traders to sell the news. But as those fears abated, stocks revved higher, and by Thursday, all the major indices were near their all-time highs. Even with some selling after Friday’s jobs report, stocks are likely to close the week slightly higher.
The question is, where are investor dollars moving? Sector rotation is underway, as some technology stocks are trading lower due to concerns over AI spending. But it’s too early to tell who the new winners will be.
Next week, investors will get the latest reading on inflation with the January readings of the Consumer Price Index (CPI) and the Producer Price Index (PPI). A benign reading on inflation will increase hopes for a rate cut in May or June, but a hot report will likely dampen those expectations and could send stocks lower.
