top of page
PWM-wo-Tag-Final.jpg

Market Recap

Thanks for subscribing!

February 10, 2025

 

Optimism headed south on Friday.

 

After rising for most of the week, stock markets lost momentum last Friday as economic data raised doubts about further Federal Reserve rate cuts, reported Rita Nazareth of Bloomberg. Late in the day, President Trump announced new tariffs would be imposed this week, and stocks dropped into negative territory.

 

Consumer Sentiment Fell Sharply

 

Last week, the University of Michigan Consumer Sentiment Index reported that consumer confidence, which tumbled four percent in January, fell another five percent in February.

 

“Consumer sentiment fell for the second straight month, dropping about 5 [percent] to reach its lowest reading since July 2024. The decrease was pervasive, with Republicans, Independents, and Democrats all posting sentiment declines from January, along with consumers across age and wealth groups. Furthermore, all five index components deteriorated this month, led by a 12 [percent] slide in buying conditions for durables, in part due to a perception that it may be too late to avoid the negative impact of tariff policy. Expectations for personal finances sank about 6 [percent] from last month, again seen across all political affiliations, reaching its lowest value since October 2023. Many consumers appear worried that high inflation will return within the next year,” wrote Surveys of Consumers Director Joanne Hsu.

 

Rising inflation could keep the Federal Reserve from lowering rates further. Survey participants expected prices to rise 4.3 percent over the next 12 months. That is a full point higher than in the previous month, when they anticipated prices would rise by 3.3 percent. Over the longer term, inflation expectations were steadier, rising from 3.2 percent to 3.3 percent.

 

Tariff Talk Took A Toll

 

In a Friday afternoon press conference, President Trump indicated he will implement reciprocal tariffs next week, although he did not specify which countries will be affected. “The tariffs would be the next volley in a trade war pitting the U.S. against some of its largest trading partners. Trump announced levies of 25 [percent] against Canadian and Mexican imports last weekend, though suspended them for a month after the countries agreed to increased border security and measures to reduce the flow of illegal drugs into the [United States]. A separate 10 percent tariff against Chinese imports went into effect, and China responded with tariffs of its own,” reported Joe Light of Barron’s.

 

Employment Remained Relatively Stable In January

 

The U.S. employment report showed hiring was solid in January, but less robust than expected, reported Lucia Mutikani of Reuters. The data showed “strong wage growth last month, with average hourly earnings surging by the most in five months, which should keep consumer spending supported.”

 

While a steady labor market was encouraging, investors have some concerns about the future, reported Megan Leonhardt of Barron’s. “Looking ahead, employment conditions could face more headwinds as federal policy changes take hold, and many economists expect to see further weakening within the U.S. labor market this year. The shifts in trade and immigration policies, in particular, could upend the relative stability currently on view in the labor market, as well as impede the downward progress inflation has made.”

 

On Friday, major United States stock indices gave back gains from earlier in the week and ended the week lower. The yield on the benchmark 10-year U.S. Treasury moved lower over the full week before rising on Friday.

2-10-25.png

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Parks Wealth Management are separate entities from LPL Financial. 

* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.

* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.

* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.

* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.

* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.

* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.

* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

* Past performance does not guarantee future results. Investing involves risk, including loss of principal.

* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.

* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

* Asset allocation does not ensure a profit or protect against a loss.

* Consult your financial professional before making any investment decision.

* These views are those of Carson Coaching, and not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.

Sources:

https://www.bloomberg.com/news/articles/2025-02-06/stock-market-today-dow-s-p-live-updates (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2025/02-10-25_Bloomberg_Stocks%20Slide%20as%20Tariff%20Angst%20Adds%20to%20Price%20Worries_1.pdf)

https://www.barrons.com/articles/trump-japan-reciprocal-tariffs-d70ebe70?mod=Searchresults (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2025/02-10-25_Barrons_Trump%20to%20Announce%20Reciprocal%20Tariffs_2.pdf)

http://www.sca.isr.umich.edu (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2025/02-10-25_UM%20Survey%20of%20Consumers_3.pdf)

https://www.reuters.com/markets/us/us-job-growth-misses-expectations-january-unemployment-rate-40-2025-02-07/

https://www.barrons.com/livecoverage/january-jobs-report-data-today (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2025/02-10-25_Barrons_Why%20Januarys%20Weak%20Jobs%20Report%20Makes%20Rate%20Cut%20Less%20Likely_5.pdf)

https://www.barrons.com/market-data?mod=BOL_TOPNAV (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2025/02-10-25_Barrons_Data_6.pdf)

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2025

https://www.empower.com/the-currency/play/retire-well-live-little-research

https://wallethub.com/edu/best-and-worst-states-to-retire/18592

https://www.gobankingrates.com/money/economy/cost-of-living-by-state/

https://www.reuters.com/world/us/florida-homeowners-fear-soaring-insurance-cost-after-hurricanes-2024-10-17/

https://www.brainyquote.com/quotes/george_eliot_161679

Legal 

No strategy assures success or protects against loss. Diversification does not protect against market risk. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

 

All content is developed from sources that are believed to provide accurate information. The information provided in these materials is not intended to be tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and the materials provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

​

Five Star Professional Wealth Manager Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2012-2024 Five Star Wealth Managers.

​

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Parks Wealth Management are separate entities from LPL Financial. 

​

The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AZ, CA, CO, CT, DE, FL, GA, HI, IN, MA, MD, ME, MI, NC, NH, NJ, NY, OH, OR, PA, SC, TX, VA, WA, WV.

​

Contact

  • Facebook
  • LinkedIn Social Icon
  • LinkedIn Social Icon

Parks Wealth Management

 

Office: (201) 689-2020

Fax:(201) 689-6850

 

148 Prospect Street
Second Floor 
Ridgewood, NJ 07450

​

info@parkswm.com

​

Check the background of this firm on FINRA's BrokerCheck.

​

LPL Financial Form CRS

​

bottom of page