Edward Jones - Financial Advisor: Michael Roccisano

Markets are off to a good start in 2023, but this comes on the heels of an extremely challenging 2022, in which both stocks and bonds logged declines for the year, something that hasn't occurred since 1994. There's good news for investors, however, as history shows down years for the stock market have typically been followed by healthy gains. While the clouds have not completely cleared, we think there are reasons to be optimistic. In our latest Weekly Market Wrap, we examine what often happens after down years for the market and what it could mean for the year ahead.

Weekly market wrap A summary of last week's market highlights and economic news.

After a positive start to the year in markets – in part driven by a better inflation narrative in the U.S. and globally – this past week investor sentiment seemed to turn somewhat lower. Equity markets turned negative mid-week after economic data pointed to a weaker U.S. consumer and manufacturing sector. Take a closer look at the rest of our key takeaways.

Weekly market wrap A summary of last week's market highlights and economic news.

The U.S. headline CPI eased further, with December marking the smallest annual increase since October 2021. Paired with the November and October data, core inflation has now slowed for three consecutive months, suggesting that a pattern of disinflation is emerging. Price pressures remain too high for the Fed's comfort, but the gradual cooling likely sets the stage for the Fed to downshift further in the pace of rate hikes. Read our latest weekly market update for thoughts on what the recent data could mean for the markets and investment strategy.

Weekly market wrap A summary of last week's market highlights and economic news.

Last week, markets digested three key pieces of data – a CPI inflation reading that came in better than expected, Fed commentary that indicate their job is not done yet, and U.S. retail sales showing a consumer under pressure. Overall, while the Fed (and global central banks) remain vigilant for now, as inflation moderates and the economy softens in the months ahead, the need for peak restrictive policy may wane. We discuss five key takeaways from a busy market week in our Weekly Wrap below.

Weekly market wrap A summary of last week's market highlights and economic news.

Check out our weekly market update.

Weekly market wrap A summary of last week's market highlights and economic news.

Markets took a bit of a breather this week after a strong rally higher over the last month. The focus on inflation and the impact it's having on interest rates continues to be the primary influence on market moves. But with fixed income yields now at their highest levels in 15 years, equities now have some competition, raising questions for investors around where to put their investment dollars today. We think this underscores the importance of aligning portfolio decisions with goals instead of emotions, and in this week's Market Wrap, we look at the decisions investors are facing and the opportunities that we believe lay ahead.

Weekly market wrap A summary of last week's market highlights and economic news.