Stocks Near Record Highs as Investors Eye Fed Minutes & Manufacturing Data

📈 The S&P 500 reached a record high last week as inflation data fueled optimism about potential Federal Reserve rate cuts.

🔹 Market Recap:

✔ Nasdaq Composite (^IXIC) +2.5%
✔ S&P 500 (^GSPC) +1.5%
✔ Dow Jones Industrial Average (^DJI) +0.5%

🔹 What’s Ahead This Week?

💼 Earnings Reports: Investors will watch Walmart (WMT) and Alibaba (BABA) as part of a holiday-shortened trading week (markets closed Monday for Presidents’ Day).

📊 Fed Watch: The Federal Reserve’s January meeting minutes (due Wednesday at 2 p.m. ET) may offer clues on interest rate cuts after inflation data showed price increases slowed in January.

🏭 Manufacturing & Services Data: Investors will monitor economic activity updates and consumer sentiment reports for signs of economic health.

🔹 Rate Cut Outlook

Despite higher-than-expected inflation in January, economists still expect rate cuts in 2025. Morgan Stanley’s Michael Gapen says the Fed is closer to cutting rates than hiking them.

🔹 The “Magnificent Seven” tech rally broadens:
🔸 Meta (META) +25% YTD, up 20 straight days
🔸 Amazon (AMZN) and Meta outperforming the S&P 500
🔸 More stocks contributing to gains, not just Big Tech

📊 With markets near record highs, investors are focused on Fed signals, corporate earnings, and economic data. Will the momentum continue? 🚀