Weekly Economic Summary - 3/26/2018Submitted by Miller Financial Group, LLC on March 26th, 2018
U.S. stocks are in rally mode in early trading today following a week that saw all three major indices experience their worst weekly performance in more than two years. On Friday, the Dow finished the week down 5.7% and the S&P500 was 6% lower. At current levels, the Dow is 10% below its record close while the S&P500 is sitting 8.5% below its all-time high.
The driving factor which fueled last week’s selling pressure were threats of a global trade war. Those fears have been eased on news this morning that U.S. and China officials are conducting behind the scenes talks. Those talks are being held by U.S. Treasury Secretary Steven Mnuchin and Liu He, China’s vice premier of economic policy and are aimed at giving U.S. companies better access to Chinese markets. The tensions started last week when the Trump administration declared tariffs on certain Chinese products and Chinese officials fought back with threats of their own.
The tech sector is a leader in today’s rally with Microsoft, Netflix, Intel, Amazon and Apple all firmly in positive territory. Facebook continues to fall following the story that broke last week about a data privacy scandal. Facebook shares fell 14% last week and they are down over 4% today.
It is a holiday shortened week with the markets closing on Friday in observance of Good Friday. It will also be a light economic reporting week. The Chicago Fed national activity index for February came out already this morning and the news was positive with the index up to 0.88 from 0.2 in January. There are several scheduled speeches from Federal Reserve members throughout the week.
In news around the world, European stocks were rallying early on in the session but turned negative into the close. Asian markets finished the day mixed.
The close of tax season is a good time to schedule a review. Give us a call or send an email and we will get you on the calendar. Have a great week.