It’s time to review last month’s key events and look ahead to what’s coming in the market and economic landscape. Download the latest edition of the Month-in-Review, developed by the Prime Capital Financial Investment Team!
Quick Takes
- Mag 7 Lags Stocks. Equity indices rose in January as the S&P 500 index increased 2.7%, the Dow rose 4.7%, and the Russell 2000 was up 2.6%. Despite a strong overall month, the Magnificent 7, which has driven stock gains over the last two years, lagged the broader indices falling 0.3% on the month.
- Inflation and Interest Rates. The 10Y treasury yield rose in the first half of January only to fall back to where it was to start the month at 4.5%. Inflation rose in December as the PCE index rose 2.6% year-over-year. Despite the higher headline number, core inflation remained flat at 2.8%.
- AI Spending Continues. Big technology companies will continue to spend on AI capital investment in 2025. Meta Platforms indicated that it would spend $60-65B on capital investment in 2025. Microsoft indicated that it would invest $80B in 2025 to continue its own data center capacity expansion.
- Trump’s Executive Orders. President Trump signed 45 executive orders by the end of January after taking office on January 20th. The executive orders made policy changes related to tariffs, immigration, energy, regulation, DEI, and the military.
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This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment or any change to your retirement plan. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.