S&P 500 Logs Weekly Loss As Investors Digest Latest Inflation Data

The SPDR S&P 500 ETF Trust SPY traded lower in a volatile four-day week as the latest batch of inflation data rattled Wall Street.

On Friday, the Bureau of Economic Analysis reported the personal consumption expenditures price index increased by 5.4% year-over-year in the month of January, up from 5.3% in December. Core PCE, which excludes volatile food and energy prices and is the Fed's preferred inflation gauge, was up 4.7%, above economist estimates of 4.3%.

Related Link: 'Big Upside Surprise': Experts React To 4.7% Core PCE Inflation As Interest Rate Expectations Continue To Rise

In its latest meeting minutes released on Wednesday, Federal Reserve members said inflation "remained well above" its 2% target and more interest rate hikes will likely be necessary to bring it down. The Fed also noted the U.S. labor market "remained very tight, contributing to continuing upward pressures on wages and prices."

On Thursday, Fidelity Investments reported the average 401(k) retirement account balance dropped 23% in 2022 to $103,900. Fidelity reported the total 401(k) savings rate in the fourth quarter was 13.7%, below the firm's recommended savings rate of 15%.

Boeing Co BA shares dropped on Friday after the company once again halted deliveries of its 787 Dreamliner to conduct additional analysis on a component of the plane's fuselage. Boeing resumed delivering the 787 Dreamliner in August 2022 following a two-year halt to address manufacturing flaws.

Related Link: Boeing Once Again Suspends Deliveries Of 787 Dreamliners: What You Need To Know 

Put The Brakes On: Shares of online used-car dealer Carvana Co CVNA declined 20% on Friday after the company reported a 24% drop in revenue and a $806-million net loss in the fourth quarter.

In the week ahead, investors will see more quarterly reports from Target Corporation TGT on Tuesday, Salesforce Inc CRM on Wednesday and Kroger Co KR and Dell Technologies Inc DELL on Thursday.

Analysts expect S&P 500 companies to report negative overall earnings growth in the first two quarters of 2023, according to FactSet.

Economic Numbers: Investors will get key economic updates on Monday when Federal Reserve Governor Philip Jefferson delivers a speech to Harvard University students and on Wednesday when the Institute for Supply Management releases its February Manufacturing Purchasing Managers Index (PMI) reading.

Photo via Shutterstock.