The S&P 500 index edged down 0.3% last week as investors weighed concerns about the US debt ceiling against data indicating inflation may be slowing.
The index is now up 7.4% for the year to date.
The slight loss came amid investors’ worries about the US debt ceiling after Treasury Secretary Janet Yellen said last week that the US government could default if Congress doesn’t raise the debt limit.
Still, investors were encouraged by data indicating inflation may be slowing. The April US Producer Price Index rose less than expected, and less than in March. The US Consumer Price Index, another key measure of inflation, rose by 4.9% in April from a year earlier, the Labor Department said, marking a slowdown from a 5% increase in March.
All but two sectors fell. The energy and materials sectors had the largest percentage drops for the week, shedding 2.2% and 2%, respectively. Other sectors down by more than 1% each included financials, health care and industrials.
Just two sectors rose on the week — communication services climbed 4.3% and consumer discretionary edged up 0.6%.
This week, companies expected to release quarterly earnings results include Home Depot (HD), Cisco Systems (CSCO), TJX Cos. (TJX), Target Corp. (TGT), Walmart (WMT), Alibaba Group Holding (BABA) and Deere (DE).
The economic calendar for this week features the May Empire State manufacturing survey on Monday, April retail sales and industrial production on Tuesday, April housing starts on Wednesday, and the May Philadelphia Fed manufacturing survey as well as April existing home sales on Thursday.
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Bautis Financial Advisor Commentary: May 12, 2023