Weekend Update 2/18/2024

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Market rally disrupted by hotter-than-expected inflation data

️☀️ Hotter inflation. Both January CPI and PPI came in hotter than expected. Inflation appears to be slightly reaccelerating in back to back months after a higher reading in December too. While not disastrous, lowering inflation to the Fed’s target may take longer than expected.

💸 Higher for longer. Markets are recalibrating #RateCuts expectations. After the hotter inflation data, rates will likely be #HigherForLonger as the Fed will need more datapoints returning back to fall inflation levels to be comfortable to start cutting.

💔 Market dumped. The S&P 500 ended down -0.4% for the week. Despite a slightly red week, the market remains very optimistic for a perfect #Goldilocks landing to avoid a recession. However, that will likely require #RateCuts to happen sooner rather than later.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.