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Despite Strong Economic News, Stocks Dropped This Past Week

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Stock market speculators and other “hot money” investors were unhappy last week and stocks dropped sharply but the economic news gave long-term investors plenty to smile about.

Economic data released this week gave investors something to smile about, but stocks still dropped sharply.

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Economic data released this week was great:

  • Retail sales dropped slightly in May but remains astronomically high.
  • Housing starts in May were up slightly in May and for six months have been hovering around the strongest level in nearly 5 years.
  • The U.S. Index of Leading Economic Indicators are at an all-time high.
Despite the strong economic news, the Standard & Poor’s 500 stock index lost 1.9% this past week.

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The Standard & Poor’s 500 stock index closed today at 4,166.45, a loss of -1.31% from Thursday, and down -1.92% from last Friday’s all-time high closing price. The index is up +60.24% from the March 23rd bear market low.

As reported in last week’s update, inflation fears are preoccupying investor sentiment. With the Federal Reserve Bank hiking its forecast for inflation this past week and saying it expects to raise interest rates twice in 2022, inflation is causing investment market volatility. While the Fed could make a mistake and cause a recession, it’s telegraphing its monetary policy moves months in advance, which is reassuring to permanent investors.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


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This article was written by a professional financial journalist for Financial Planners and is not intended as legal or investment advice.

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