Record Highs Kick Off the Week in Financial Markets

Last week was quite the rollercoaster for the stock market. On Tuesday, the S&P 500 index soared to a new high, its 17th for the year, thanks to investors feeling good and noticing that prices for things like food weren't going up as fast.

by Faruk Imamovic
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Record Highs Kick Off the Week in Financial Markets
© Getty Images/Scott Olson

Last week was quite the rollercoaster for the stock market. On Tuesday, the S&P 500 index soared to a new high, its 17th for the year, thanks to investors feeling good and noticing that prices for things like food weren't going up as fast.

But that happy vibe didn't last. As the week went on, worries about rising prices came back, and stocks along with gold and Bitcoin took a hit.

Highs and Lows of the Week

The week started off great for the stock market. When the S&P 500 hit a new record on Tuesday, it was a big deal, especially since consumer prices had jumped by 3.2% over the year, more than folks were expecting.

But investors seemed okay with it, maybe because they saw that some prices were starting to stabilize. Gold and Bitcoin also did really well, with gold hitting a whopping $2,188.60 an ounce and Bitcoin breaking past $73,000.

People were hopeful the Federal Reserve might lower interest rates by the summer.

When Worries Crept Back In

But then, the mood changed. A report came out showing that prices for businesses were going up fast, mainly because energy costs were soaring.

That made everyone nervous, and the stock market took a dive, ending the week on a sour note. Ken Tjonasam from Global X had something to say about it. He mentioned that what we're seeing isn't just a one-time thing; it's starting to look like a trend that's not going the way we hoped, especially with the Federal Reserve wanting to see prices start to calm down.

Trouble in the Skies

The airline sector also had a tough week. Problems with Boeing have been causing headaches for airlines, like when a Latam Airlines flight suddenly dropped in altitude on its way from Australia to New Zealand, which might have been due to a cockpit mistake.

Southwest Airlines also had to lower its expectations for how many new planes it would get from Boeing and said it couldn't predict how it would do this year. This news made the stocks for Boeing and Southwest fall quite a bit.

Yet, Liz Young from SoFi reminded us that the S&P 500 hasn't had a really bad day, with a drop of 2% or more, in over a year. That's a sign of how strong the market has been, even when people were expecting a downturn.

What's Coming Up?

Next week looks busy for investors. Nvidia is holding a big conference on artificial intelligence, and Super Micro Computer is getting added to the S&P 500 index, which has got people talking since its stock has gone up a lot this year.

The Federal Reserve is also meeting to talk about interest rates, and everyone's eager to see what they'll say. Plus, there's going to be new info on the housing market, which could give us some clues about where things are heading.

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