DFG Navigator Archives | February 2025
Your Capital Markets Snapshot: Inflation Data Came In Hotter than Expected
Last week, inflation data came in hotter than expected, with the Consumer Price Index (CPI) rising 0.5% month-over- month and 3% year-over-year. The Federal Reserve continues to suggest patience in their approach to cutting rates as inflation stubbornly remains above their 2% target. Expectations for multiple rates cuts this year continue to moderate. International equity markets outperformed their U.S. counterparts, fueled by strong weeks from the German DAX and Stoxx 600. Year to date, both international developed and emerging markets are outpacing U.S. equities of all sizes. Despite the poor inflation readings, the S&P 500 and NASDAQ recorded weekly gains, nearing their all-time highs. So far this year, markets have proven resilient, especially in the face of new tariff announcements and warmer inflation data. Read more … Your Capital Markets Snapshot: Inflation Data Came In Hotter than Expected
Your Capital Markets Snapshot: The U.S. Economy Continues to Show Solid Growth
The U.S. economy continues to show solid growth with Q4 2024 real GDP growing at an annualized rate of 2.3%, just below expectations of 2.5%. US GDP growth was driven primarily by consumer spending, which increased 4.2% annually (its highest level since Q1 2023). The Federal Reserve held interest rates steady, maintaining a patient approach amid solid economic growth, a healthy labor market, and stubborn inflation trends. Earnings season kicked off with strong results from companies like Apple, Microsoft, and Meta, although Tesla missed estimates. Technology stocks, particularly Nvidia and other chip manufacturers, experienced volatility following Monday’s news from Chinese AI startup DeepSeek that it developed an AI program comparable to OpenAI’s ChatGPT using a fraction of the development costs and computational resources. Much of the sector rebounded later in the week, as the news from DeepSeek was spun as a positive for increasing development and adoption of AI-related technologies. Overall, the S&P 500 is on track for strong earnings growth, with expectations for continued momentum into 2025. Read more … Your Capital Markets Snapshot: The U.S. Economy Continues to Show Solid Growth