Conner Paffrath
Feb 6, 2025
Between January 29 and February 6, global financial markets saw gains through economic data and central bank signals.
On January 29, U.S. stocks closed lower after the Federal Reserve maintained its key interest rate, citing persistent inflation concerns. The S&P 500 and Nasdaq Composite each fell 0.5%, while the Dow Jones Industrial Average slipped 0.3%. By February 6, markets showed resilience, with the S&P 500 and Nasdaq Composite rising 0.4% and 0.5%, respectively, as investors responded positively to a series of earnings reports, indicating renewed confidence in equities.
During this period, U.S. retail sales saw a modest rebound, increasing by 0.2% in February after a 1.2% decline in January, suggesting ongoing economic growth amid uncertainties. Additionally, year-ahead inflation expectations rose from 4.3% to 4.9%, fueling speculation about future Federal Reserve policies. In the UK, the economy contracted by 0.1% in January, raising fears of a potential recession. These developments underscore the delicate balance policymakers face in addressing inflation while supporting economic growth.