The release of the U.S. PPI has put the Fed members under pressure.

US equities ended mixed as investors weighed some healthy growth and profit signals against worries that inflation trends might surprise on the upside. Fears that the Fed would need to raise short-term interest rates more than previously expected caused US Treasury yields to increase and fostered a rise in the U.S. dollar, taking an especially large toll on oil prices and energy stocks. US CPI rose 0.5% in January, as expected, versus a revised 0.1% increase in December.

Interest rate volatility rebounded sharply last week, while U.S. Treasuries had their worst week in 2023.

The 60/40 portfolio rising from its ashes, as the US economy continues to show resilience. Meanwhile, inflation-friendly stocks continue to enjoy superior performances. Each week, the Syz investment team takes you through the last seven days in seven charts.

The S&P 500 and Nasdaq Composite lost 1.1% and 2.4%, respectively, in what was their worst week since December. Energy stocks were the notable upside outlier and communication services shares the prominent laggard. Shares of Google parent Alphabet lost roughly USD 100 billion in market capitalization on Wednesday and fell roughly 10% for the week after Reuters reported that Google’s new artificial intelligence (AI)-based chatbot, Bard, mistakenly identified the first satellite to take a picture of an exoplanet in its first public demonstration on Monday.

All major central banks raised interest rates again, but with different magnitudes and language.

After a very promising start of the year, investors are hopeful that markets will keep bouncing back with the resilience they have showed in January. Although the rate hike cycles now seem to have an end in sight, central banks still have much to handle. Here are ten stories to remember as we head towards springtime.

Most of the US equity indexes extended their winning streaks into February, helped by some upside surprises in economic data and Q4 earnings reports, as well as some dovish signals from the Fed. The S&P 500 reached an intraday high of 4,195 on Thursday, its best level since late August. A 23% jump on Thursday in Meta Platforms (Q4 beat + positive outlook) provided a major boost to the Nasdaq.

In a surprise move, the Bank of Canada (BoC), after raising its policy rate by 25 bps, announced a pause at its current level (4.5%) unless economic data surprises on the upside.

Eurozone bounces back and ChatGPT burries its first editorial team, while the road to recovery remains bumpy for US equities. Each week, the Syz investment team takes you through the last seven days in seven charts.