Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.0%, the S&P 500 was down 1.6%, and the NASDAQ fell 1.3%. Foreign stocks (MSCI EAFE) were also down for the week, falling 1.1%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.28%. (Data source: Wall Street Journal)
Volatility Continues as Energy Prices Continue to Rise
As the attacks on Iran continue and the global oil supply continues to be disrupted, markets have pulled back slightly. Oil prices rose over 8% last week and are now up over 70% for the year, causing worry amongst investors. Geopolitical tensions and spikes in oil cause some worry for markets, but it is something we have seen before. Higher oil prices tend to increase inflation worries and can put strain on consumers as they pay more at the pump. Oil prices were also at their lowest level since COVID, so the price has moved fast, but is still down ~20% from the spike we saw when Russia invaded Ukraine. The next couple of weeks could set the tone for market sentiment for the rest of the year, as clarity may come around how long this war will last.
February Inflation Report Remains Steady
The February CPI report was released last week and came in at 2.4% year-over-year, and core-CPI came in at 2.5%. These numbers continue to show that inflation has been under decent control and near that 2% goal for the Fed. We could see inflation move higher as a result of higher energy prices throughout the month of March. This could impact the Fed’s decision on rates for the remainder of the year. Current market expectations are for 1 cut the rest of the year and have been falling throughout the year. Investors will pay close attention to the Fed as new chair Kevin Warsh is set to take over in May.
Target Stock Up 18% in 2026, Still Below Half of Its All-Time High
One of America’s largest retailers, Target (TGT), has significantly outperformed the broader US indexes, being up a little over 18% so far this year. However, after the company filed its annual report last week and reported revenue of $104.8 billion for the fiscal year, a 1.7% decrease, shares began to slide (Target Investor Relations). Target’s performance for the remainder of 2026 is something to keep a close eye on. The company faces fierce competition in retail and, if oil prices remain high, inflationary pressures may hurt its core business. Although the stock has performed extremely well so far this year, the company’s stock remains down more than 50% from its all-time high in late 2021. (CNBC)
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Quiz
What is the all-time high price of oil? (Scroll Down for Answer)
- $147
- $163
- $189
- $216
Answer:
- $147. The price of oil hit $147/barrel in July, 2008. By December, 2008, oil prices fell by over $100 due to the global financial crisis as demand fell.
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