Monday Briefing: Climbing the Wall of Worry

Weekly Roadmap for 02/16-02/22

Weekly Market Roadmap: Climbing the Wall of Worry, Again

Markets threw us a curveball last week. What started with expectations of a Monday gap-down flipped into a gap-up instead. Inflation readings came in hotter than expected, yet the market shrugged them off and kept climbing. Ceasefire speculation, softer-than-expected PPI components for the PCE index, and the much-hyped reciprocal tariffs turning into a non-event all helped fuel the rally.

The Nasdaq ($QQQ) was the star performer, up nearly 3% on the week and just shy of a new all-time high. Small caps ($IWM) lagged behind but staged a sharp reversal from the lows, finishing flat to slightly positive by week’s end.

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What’s Ahead: A Quiet, Shortened Trading Week

With markets closed Monday for President’s Day, we’re heading into a shorter trading week. On the economic data front, it’s relatively light:

• Wednesday: FOMC minutes

• Thursday: Weekly jobless claims.

• Friday: PMIs and Existing Home Sales.

Unless a major headline shakes things up, expect a quieter market with lower volatility.