Inflation data has come in, and the outlook for interest rates remains a concern for investors. Despite the fact that stocks on Wall Street ended the week at record highs, with the S&P 500 up 0.1 percent and the Nasdaq up 0.2 percent at the market open Friday, while the Dow Jones fell 0.1 percent, there are still many uncertainties ahead.
The strength of the stock market was reflected in the results season of American stock markets. PepsiCo reported lower fourth-quarter sales than analysts had forecast but higher profitability beat expectations, and the company expects profits to increase this year. However, aggressive price growth contributed to a 2.4 percent drop in PepsiCo shares at the morning market open. Gaming company Take-Two saw its shares fall 10.1 percent as it gave cautious guidance for the year but investors remained optimistic about the release of its surefire hit GTA VI in 2025.
As inflation continues to be a concern for investors, next week is expected to bring even slower inflation rates, with analysts forecasting a fall to 2.9 percent year-on-year for January, which would be the slowest inflation rate since the start of 2021. Despite these economic developments, it’s important to remember that stocks are not immune to economic fluctuations and uncertainties can always arise in any given moment