Latest News on the Stock Market Trends

Stocks closed mixed on Wednesday as investors weighed the impact of a deal to raise the U.S. debt ceiling against worries about future economic growth and a possible rise in interest rates. The Dow Jones Industrial Average and the S&P 500 both finished up 0.2%. The tech-heavy Nasdaq Composite gained 0.4%. The bond market rallied, with yields falling on a lower-than-expected inflation report and Latest news that Treasury Secretary Steven Mnuchin had offered to help negotiate a deal with China.

Investors also turned their attention to 2024 earnings season, which begins this Friday. Analysts expect fourth-quarter earnings to grow by 2.4%. The health care and consumer staples sectors are typically considered defensive, or lower-risk, markets that tend to outperform during economic slowdowns.

The market’s reaction to earnings and economic data could give clues as to the direction stocks will take in the weeks ahead. Seventeen of the past 30 Januarys have seen the Dow Jones and S&P 500 finish with gains. However, those strong finishes often followed a rocky start to the year.

What’s the Latest News on the Stock Market Trends?

Despite the strong performance of the equity markets, some investors remain cautious about the economy’s prospects and are worried about the impact on corporate earnings from higher interest rates. Others are worried about potential political uncertainty in Washington, which could derail the economy’s progress and cause a recession.

In addition to the domestic concerns, investors are weighing geopolitical issues, such as tensions in Israel and the Ukraine and a possible trade war between the U.S. and China, which could influence investor sentiment. Investors are also watching the Federal Reserve’s monetary policy to determine if it will continue its path of raising interest rates this year.

Interest rate hikes could push down stocks, especially those with a lot of debt that will increase the cost to pay for those bonds. Stocks that produce stable, predictable earnings will have the best chance of outperforming. That may include sectors such as healthcare, utilities and consumer staples.

The Fed will likely continue its path of increasing interest rates this year and into 2020. Investors should consider strategies that reduce exposure to interest-rate risk, such as locking in high yields on certificates of deposit.

While a stock-market correction is possible, long-term investors should invest with an eye toward the future. They may be surprised at how far stocks can climb over the next five to 10 years. To learn more about how you can meet your financial goals, we invite you to schedule a complimentary consultation with one of our financial advisors. We can match you with a Financial Advisor who is personalized for you and can review your current portfolio to make sure you are on track to achieve your financial goals. Please contact us today to schedule a time that works for you.