US markets ended the shortened week higher after the US Supreme Court overturned the Trump administration’s global tariffs, which sparked a rally on Friday. Rising tensions between the US and Iran, along with higher oil prices, were also in focus. The Nasdaq Composite led the gains, rising 1.51% and posting its first weekly increase since early January. The S&P 500 and S&P MidCap 400 both gained more than 1%, while the Dow Jones Industrial Average rose 0.25%. Economic data showed that US growth slowed in the fourth quarter. GDP increased at a 1.4% annual rate, down from 4.4% in the third quarter. Business activity fell to a 10-month low in February. Housing data were mixed: homebuilder confidence dropped to 36 and pending home sales declined 0.8%, but housing starts increased 3.9% in November and 6.2% in December.
Federal Reserve meeting notes showed policymakers disagree on the next step for interest rates. Some support cutting rates if inflation falls, while others say rates may need to rise if inflation stays high. Core PCE inflation rose 0.4% from the prior month and 3.0% from a year earlier. Government bonds fell, while high-yield corporate bonds performed better.
In Europe, the STOXX Europe 600 rose 2.08% to a record high. Germany’s DAX gained 1.39%, France’s CAC 40 rose 2.45%, Italy’s FTSE MIB increased 2.29%, and the UK’s FTSE 100 added 2.29%.
