Stocks fell over the week on a sharp increase in interest rates. The S&P 500 sank 2.4% and the Dow dropped 1.7% for the week. Abroad, the FTSE All World Ex US declined 3.8% for the week. The yield on the 10-year Treasury yield surged over the week hitting its highest levels in over a year before finishing the week at 1.46%.
In Congressional testimony Fed Chair Powell reiterated the Fed’s plans to keep the Fed Funds rate low for the foreseeable future as “the economy is a long way from our employment and inflation goals.”
Consumer confidence rose in February for the second consecutive month.
New home sales rose at a 19% annualized rate in January, higher than expected.
Initial jobless claims declined by 111,000 to 730,000, better than expected and the lowest level since November.
US consumer spending rose 2.4% in January after household income surged 10%.