Investors Read Inflation Risk in Job Numbers
The Weekly Update
Week of January 13th, 2025
By Christopher T. Much, CFP®, AIF®
Stocks fell for the second consecutive week as a round of fresh economic data stoked inflationary fears among investors.
The Standard & Poor’s 500 Index declined 1.94 percent, while the Nasdaq Composite Index dropped 2.34 percent. The Dow Jones Industrial Average lost 1.86 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 0.49 percent.
Inflation Stymies Markets
Stocks rallied broadly to start the week, but two economic reports on Tuesday—job openings and the prices-paid index among service companies—raised fresh inflation concerns. Higher Treasury yields also put pressure on stocks.
Stocks flattened out on Wednesday. Investors reacted to news that most Federal Open Market Committee members agreed inflation risks had increased, per minutes from the Fed’s December meeting.
U.S. stock markets were closed Thursday in observance of President Jimmy Carter’s funeral.
On Friday, a warmer-than-expected December jobs report caused investors to …
