Gold, Bitcoin, and stocks hit record highs this week.Then came the inflation data.

new york
CNN
—

Stocks started this week on a high, but ended on a low note.

The S&P 500 index on Tuesday closed to its 17th all-time high this year as investors ignored a faster-than-expected 3.2% annual rise in consumer prices and welcomed a cooling in some categories such as food prices.

Stocks weren’t the only winners.Gold settled at an all-time high of $2,188.60 per troy ounce. That’s on the horizon Monday, as investors grow more confident the U.S. Federal Reserve will cut interest rates by June. Bitcoin also hit an all-time high earlier this week, topping $73,000 per coin.

However, stock prices have begun to lose some of their gains. mid week The yellow metal and cryptocurrencies also retreated from recent milestones due to renewed concerns about inflation.

On Friday, the Dow Jones Industrial Average fell 191 points, or 0.5%. The S&P 500 fell 0.7%. The Nasdaq Composite fell 1%. All three major indexes ended the week lower.

Higher energy prices pushed U.S. wholesale inflation 1.6% in the 12 months ending in February, the highest increase in months, according to the latest producer price index released Thursday.This caused the Dow to drop more than 300 points to its lowest point. Thursday, before offsetting losses.

“This situation is more than just a blip on the radar. We’re seeing trends that are moving away from what we expected, especially given the Fed’s clear intent that inflation trends will improve,” said Portfolio Strategist at Global X. , Ken Chonatham said in a memo Thursday.

Airline stocks have also fallen sharply this week as Boeing Co.’s longstanding safety problems continue to plague the industry.Latam Air A 787 Dreamliner flying from Australia to New Zealand lost altitude. The Wall Street Journal reported that the plane suddenly crashed mid-flight, possibly due to a cockpit error.

Additionally, Southwest Airlines said Boeing has notified airlines that it will deliver 46 Max 8 planes in 2024, 12 fewer than previously expected. The company also stated that it does not provide full-year guidance at this time.

Pilots are certified with either Airbus or Boeing, which makes up the duopoly, making it difficult for airlines to switch plane manufacturers.

“Boeing has to become a better company, and deliveries will follow,” Southwest Airlines CEO Robert Jordan said Tuesday at the JPMorgan Chase & Co. industry conference.

The NYSE Arca Global Airline Index, which tracks the performance of major U.S. and international airlines, is on track to end the week down 2.2%. Boeing shares fell 8% and Southwest shares fell 17.3%.

But Liz Young, head of investment strategy at SoFi, points out that since February of last year, the S&P 500 index has never fallen more than 2% in a single day. She says this is the longest period to achieve that since February 2018.

Young says this signal doesn’t mean the market is headed lower or further up. “This is simply a testament to how strong the market has been for over a year, especially during a time when many were expecting a recession,” he said in a blog post Thursday.

There will be more economic data and corporate events to watch next week for investors.

Artificial intelligence darling Nvidia will hold its global artificial intelligence conference for developers from March 18th to 21st, with CEO Jensen Huang giving the keynote address.

Up-and-coming super microcomputer in AI plans to join benchmark S&P500 The index before the market opens on Monday. The company’s stock is up about 276% so far this year.

The US Federal Reserve (FRB) will begin a two-day policy meeting on March 19th. Markets expect the central bank to keep interest rates on hold this month and start cutting rates in June or July, according to the CME FedWatch tool.

Investors are Stay tuned for the latest economic forecast summary. This release includes the Fed’s latest dotplots, which chart interest rate expectations for the coming years from each member of the Federal Open Market Committee. In December, the Fed predicted three quarter-point rate cuts in 2024.

Next week, Wall Street will analyze a series of recent data on the housing market, including the National Association of Home Builders/Wells Fargo Housing Market Index, Census Bureau housing starts data, and the National Association of Home Builders’ monthly existing home sales report. I plan to. Real estate agent.

Levels may change slightly as the stock price settles after the trading day.