Stocks were mixed last week as investor concerns over inflation and trade policy combined to produce another volatile trading week. 

The Dow Jones Industrial Average rose 0.95 percent, while the Standard & Poor’s 500 Index lost 0.98 percent. Meanwhile, the tech-heavy Nasdaq Composite Index dropped an eye-catching 3.47 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, lost 1.03 percent.^1,2

Trade Talk

The week began under pressure after the White House said 25 percent tariffs on Mexico and Canada would begin after the 30-day pause ends in early March. 

On Tuesday, S&P and Nasdaq stocks continued their slide on news that consumer confidence weakened more than expected. Concerns about inflation and tariffs merged with investors fretting over economic growth and global trade. It was the fourth straight day of declines for the S&P 500 and Nasdaq. The Dow, however, advanced for its third consecutive session.^3,4

After a quiet Wednesday, stock fell broadly on Thursday after the White House announced additional tariffs on goods from China and Europe. A large chipmaker prominent in artificial intelligence (AI) matters produced a mixed corporate report for Q4, which put some pressure on the broader market.^5,6

Friday’s news that inflation moderated boosted stocks, with prices accelerating higher into the close of trading. The Fed’s favorite core inflation measure hit 2.6 percent in January, which aligns with forecasts.⁷

Getting a Read on Tariffs

Markets dislike uncertainty, so steady trade talk produces volatile intra-week trading. Investors don’t know what tariffs will be enforced versus which ones are part of an ongoing negotiation, which can produce unsettling price swings. 

S&P 500 companies echo some of that uncertainty. At last check, 146 have mentioned the term “tariff” or “tariffs” on Q4 conference calls with shareholders–the highest level since Q2 2019.⁸

This Week: Key Economic Data

Monday:  ISM Manufacturing. Construction Spending.

Tuesday:  Auto Sales. New York Fed President Williams speaks.

Wednesday:  ADP Employment Report. Factory Orders. ISM Services Index.

Thursday:  Productivity. Trade Deficit. Wholesale Inventories.

Friday:  Employment Situation. Consumer Credit. New York Fed President Williams speaks.

^{Source: Investors Business Daily – Econoday economic calendar; February 27, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday:  CrowdStrike (CRWD), Target Corporation (TGT), AutoZone, Inc. (AZO)

Wednesday:  Marvell Technology, Inc. (MRVL)

Thursday:  Broadcom Inc. (AVGO), Costco Wholesale Corporation (COST)

^{Source: Zacks, February 27, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Only a life lived for others is a life worthwhile.”

– Albert Einstein

Don’t Forget to Check Your Withholding

When was the last time you checked your tax withholding? Having the correct amount of tax withheld from your wages is part of managing your taxes. The amount you withhold depends on your income, the number of children you claim on your return, and more. 

The IRS has a helpful tool on their site called their Tax Withholding Estimator that can help you know if you have too much or too little tax withheld from your wages. Before using the tool, have all your paperwork handy, including your W2, 1099, 1095-A, and 1099-NEC, and any other forms to determine how much your income is taxable.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

What is Foam Rolling?

Exercise is super important for our overall health, but so is recovery. Foam rollers are a popular recovery tool because they help release tension in tight, tired muscles.

Foam rollers are large cylinders made from high-density foam. They come in different sizes and firmness levels and can massage large and smaller muscle groups. You can use the foam roller before or after a workout, depending on your needs.

You can do countless foam rolling exercises for sore muscles, including rolling out your hamstrings, quads, upper back, lower back, IT band, triceps, forearm, and more.

Tip adapted from WebMD¹⁰

Lidia immediately went bankrupt after the car she was pushing around stopped in front of a hotel. It sounds sad, but she wasn’t upset. What was she doing?

Last week’s riddle: I have rosy cheeks, I am round and cute – yet debate persists over whether I am vegetable or fruit. What might I be?
Answer: A tomato.

Arashiyama Bamboo Forest
Kyoto, Japan

Stocks fell last week as concerns about sticky inflation and the pace of economic growth rattled investors. 

The Standard & Poor’s 500 Index declined 1.66 percent, while the Nasdaq Composite Index dropped 2.51 percent. The Dow Jones Industrial Average also fell 2.51 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, was essentially flat (+0.04 percent).^1,2

S&P 500 Hits New High, Then Slips

Following the Presidents’ Day holiday, stock prices were largely range-bound on Tuesday despite some intraday volatility. Then stocks edged higher, shaking off some new tariff talk and disappointing housing starts data. The S&P 500 marked its third record close of the year on Wednesday.^3,4

On Thursday, stocks were under pressure from the start of trading after a weaker-than-expected outlook from a mega-retailer. The update reinforced some concerns that the economy may be slowing. The selling accelerated on Friday after a consumer sentiment survey showed investors are unsettled about the inflation outlook.

Friday’s decline was the worst of the young year.⁵

Economic Jitters

Investors were forced to navigate a week of disappointing news about the economy and inflation.

First, traders were surprised to hear about slowing demand at the country’s biggest retailer, which soured the outlook for the consumer and the economy. Then, the University of Michigan Consumer Confidence survey fell by 10 percent in February as consumers expressed concerns about higher inflation ahead of possible new tariffs.⁶

This combination prompted investors to move into a “risk-off” position before the weekend. 

This Week: Key Economic Data

Tuesday:  Consumer Confidence. Fed Officials Lorie Logan and Thomas Barkin speak.

Wednesday:  New Home Sales. Fed Officials Thomas Barkin and Raphael Bostic speak.

Thursday:  Gross Domestic Product (GDP). Durable Goods. Weekly Jobless Claims. Pending Home Sales. Fed Balance Sheet.

Friday:  Personal Consumption and Expenditures (PCE) Index.

^{Source: Investors Business Daily – Econoday economic calendar; February 21, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday:  The Home Depot, Inc. (HD), Intuit Inc. (INTU)

Wednesday:  NVIDIA Corporation (NVDA), Salesforce Inc. (CRM), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX)

Thursday:  Dell Technologies Inc. (DELL)

Friday:  Berkshire Hathaway Inc. (BRK.A,BRK.B)

^{Source: Zacks, February 21, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“One man practicing sportsmanship is far better than 50 preaching it.”

– Knute Rockne

Receive Your Tax Return Quicker With Direct Deposit

Want to receive your tax return quickly? The IRS recommends filing your return online and providing your direct deposit information. In addition to receiving your refund quicker, using direct deposit has a few other benefits. 

Direct deposit is also fast, secure, and accessible. You must provide your bank account and routing number to sign up for direct deposit. Taxpayers should have this information available when ready to file because the IRS can’t accept it after filing a return.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁷

How to Start a Meditation Practice

If you’re interested in starting a meditation practice, the good news is that you don’t need much to get started. Here are some tips:

• First, find a place to meditate. It doesn’t have to be a dedicated space but should be calming and free from distractions.
• Next, set a time limit. Even just 5 minutes of meditation a day is enough to get started.
• Now, it’s time for the actual meditation! Meditation aims to clear your mind of intrusive thoughts and be fully present where you are. Don’t focus on not thinking about anything at all. Instead, watch your thoughts float by as you stay centered on your breath.
• If your mind wanders, it’s okay! Gently bring it back to the present and focus on your breath or something around you.

Tip adapted from Mindful⁸

I have rosy cheeks, I am round and cute – yet debate persists over whether I am vegetable or fruit. What might I be?

Last week’s riddle: I’m comprised of solid ground, and yet I see water all around. What exactly am I?
Answer: An island.

Shanghai at Night

Shanghai, China

Footnotes and Sources

^{1. The Wall Street Journal, February 21, 2025}

^{2. Investing.com, February 21, 2025}

^{3. CNBC.com, February 18, 2025}

^{4. The Wall Street Journal, February 19, 2025}

^{5. CNBC.com, February 21, 2025}

^{6. The Wall Street Journal, February 21, 2025}

^{7. IRS.gov, April 11, 2024}

^{8. Mindful, October 3, 2024}

Stocks advanced last week despite some intra-week volatility as investors showed concern about the economy’s strength. 

The Standard & Poor’s 500 Index gained 1.47 percent, while the Nasdaq Composite Index picked up 2.58 percent. The Dow Jones Industrial Average added 0.55 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, tacked on 2.53 percent.^1,2

The Fed Is in “No Hurry”

Stocks opened the week higher, quickly discounting news that the White House would impose 25 percent tariffs on all steel and aluminum imports. Tuesday was a volatility session, punctuated by comments from Fed Chair Powell, who told lawmakers the central bank doesn’t “need to be in a hurry” to lower interior rates further.^3,4

Stocks opened lower Wednesday after a warmer-than-expected update on consumer prices. But stocks showed some resilience and rallied throughout the day. The Nasdaq managed to claw back its losses before Wednesday’s close.⁵

On Thursday, the White House announced a plan for reciprocal tariffs (levies on goods imported into the U.S. from countries that impose tariffs on U.S.-exported goods). But markets rallied on news that the administration would pause tariffs until they determine how much to levy on each country. Stocks took a breather on Friday, shrugging off a weaker-than-expected retail sales report.

The S&P ended shy of a record close, and the Nasdaq finished the week above the 20,000 mark.⁶

Inflation in Focus

The Consumer Price Index report showed prices rose 0.5 percent in January–slightly hotter than expected. Shelter costs remained elevated, increasing 0.4 percent for the month.

Core CPI, which excludes volatile food and energy prices, was also above forecast. Food prices rose 0.4 percent, pushed by a 15.2 percent increase in egg prices related to ongoing issues forcing farmers to cull chicken flocks. Energy prices picked up 1.1 percent as gasoline prices rose.^7,8

This Week: Key Economic Data

Tuesday:  Homebuilder Confidence Index. San Francisco Fed President Mary Daly speaks.

Wednesday:  Housing Starts & Building Permits. Minutes from January Fed meeting.

Thursday:  Weekly Jobless Claims. Leading Economic Indicators. Fed Officials Austan Goolsbee and Alberto Musalem speak.

Friday:  Existing Home Sales. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar; February 14, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday:  Arista Networks, Inc. (ANET), Medtronic (MDT)

Wednesday:  Analog Devices, Inc. (ADI)

Thursday:  Walmart Inc. (WMT), Booking Holdings Inc. (BKNG), The Southern Company (SO)

^{Source: Zacks, February 14, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Better shun the bait than struggle in the snare.”

– John Dryden

You May Be Able to File Your State and Federal Tax Returns for Free

Taxpayers whose adjusted gross income is $79,000 or less may be able to file their federal taxes for free using IRS Free File and do their state taxes at no charge through the same service. More than 20 states have a Free File program similar to the federal service.

IRS Free File partners also feature several helpful online products. Through Free File, taxpayers can choose the Free File option, guided tax preparation, or Free File Fillable Forms. Make sure to filter for the free options because some additional services may have a charge.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁹

What is Meatless Monday?

Thanks to new (and much more delicious) meat substitutes, more people are swapping at least one meal weekly for a vegetarian dish. One of the most popular ways to do this is starting Meatless Monday in your household!

Eating less meat and more plant-based choices has many potential health and environmental benefits. While you might not be ready or interested in giving up meat entirely, subbing in meatless meals on Monday is an excellent change of pace and might open your eyes to more delicious plant-based meals like:

• Veggie lasagna
• Vegetarian pizza
• Pasta with lentils
• Homemade falafel and hummus
• Protein-packed salads

The possibilities for Meatless Monday are endless! Your body and the environment will thank you for eating more plants.

Tip adapted from The Monday Campaigns¹⁰

I’m comprised of solid ground, and yet I see water all around. What exactly am I?

Last week’s riddle: Each morning, I show up at your feet, yet at midday, I nearly retreat. No matter how fast you move, I follow. What am I?
Answer: Your shadow.

North American Bull Elk

Maxwell Wildlife Preserve, Kansas

Footnotes and Sources

^{1. The Wall Street Journal, February 14, 2025}

^{2. Investing.com, February 14, 2025}

^{3. MarketWatch.com, February 10, 2025}

^{4. CNBC.com, February 11, 2025}

^{5. The Wall Street Journal, February 12, 2025}

^{6. CNBC.com, February 14, 2025}

^{7. The Wall Street Journal, February 12, 2025}

^{8. MarketWatch.com, February 10, 2025} 

^{9. IRS.gov, August 20, 2024}

^{10. The Monday Campaigns, October 3, 2024}

Stocks posted modest losses last week as tariff deals, January jobs data, and Q4 corporate reports injected volatility into markets.

The Standard & Poor’s 500 Index slipped 0.24 percent, while the Nasdaq Composite Index lost 0.53 percent. The Dow Jones Industrial Average fell 0.54 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, edged ahead 0.17 percent.^1,2

Tariffs, Q4 Reports, and Jobs

On Monday, stocks opened lower on news that tariffs on Mexico, Canada, and China went into effect over the weekend. However, markets rebounded midmorning following news of a U.S.-Mexico deal that delayed new trade rules. News of a similar last-minute agreement with Canada followed.³

Stocks continued their rally midweek, led by technology stocks from companies that provided upbeat Q4 corporate reports.^4,5

The S&P 500 and Nasdaq rose for the third consecutive day on Thursday, while the Dow experienced a slight fall as investors digested more corporate earnings reports. The week closed on a down note as a mixed jobs report and a cautionary inflation outlook disappointed investors.^6,7

Mixed Signals on the Labor Market

As has happened several times in recent years, two job reports told conflicting stories about the state of the jobs market. On Friday, the Bureau of Labor Statistics reported that 143,000 jobs had been added for the month–a four-year low. Earlier in the week, the ADP report showed the economy added 188,000 new jobs, ahead of the 150,000 economists expected.^8,9

Why do the reports tell different stories? Economists point to various factors, including how January can be challenging to measure accurately, typically due to the more significant number of laid-off seasonal workers.¹⁰

This Week: Key Economic Data

Tuesday:  Cleveland Fed President Beth Hammack and New York Fed President John Williams speak.

Wednesday:  Consumer Price Index (CPI). Atlanta Fed President Raphael Bostic speaks. Federal budget.

Thursday:  Weekly Jobless Claims. Producer Price Index (PPI).

Friday:  Import Price Index. Retail Sales. Industrial Production. Business Inventories.

^{Source: Investors Business Daily – Econoday economic calendar; February 7, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday:  McDonald’s Corporation (MCD), Vertex Pharmaceuticals Incorporated (VRTX)

Tuesday:  The CocaCola Company (KO), S&P Global Inc. (SPGI), Shopify Inc. (SHOP), Gilead Sciences, Inc. (GILD)

Wednesday:  Cisco Systems, Inc. (CSCO), AppLovin Corporation (APP)

Thursday:  Applied Materials, Inc. (AMAT), Deere & Company (DE), Palo Alto Networks, Inc. (PANW), Brookfield Corporation (BN), Moody’s Corporation (MCO)

^{Source: Zacks, February 7, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Understanding is a two-way street.”

– Eleanor Roosevelt

Beware of Ghost Preparers

Ghost preparers don’t sign the tax returns they prepare, which is unethical and illegal. All paid preparers must sign and include their Preparer Tax Identification Number (PTIN) on the return, and if they don’t, this is a big red flag. These preparers might also promise unrealistic refunds or charge fees based on the size of the refund. 

The IRS also has a page on IRS.gov dedicated to helping taxpayers choose a reputable tax professional and a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹¹

Two Leg Stretches to Try at Your Desk

We spend so much time sitting at our desks, so getting some stretches here is good, especially after a long day. The good news is that you don’t have to leave your desk to get these two stretches in!

• Hip and Knee Flexion Stretch. For this stretch, hug one knee at a time and gently pull it toward your chest. Hold the pose for 10-30 seconds and repeat on both sides. This post will stretch your quads, hamstrings, and hips.
• Hamstring Stretch. For this stretch, remain seated and extend one leg straight before you. Reach toward your toes without hyperextending, and hold the stretch for 10-30 seconds. Repeat on the other side. You’ll feel this stretch in your hamstrings and lower back.

Tip adapted from Healthline¹²

Each morning, I show up at your feet, yet at midday, I nearly retreat. No matter how fast you move, I follow. What am I?

Last week’s riddle: It sits when it stands. It walks in jumps. It can grow up to 8′ tall. What is it?
Answer: A kangaroo.

Plitvice Lakes National Park

Republic of Croatia, Croatia

Footnotes and Sources

^{1. The Wall Street Journal, February 7, 2025}

^{2. Investing.com, February 7, 2025}

^{3. The Wall Street Journal, February 3, 2025}

^{4. CNBC.com, February 4, 2025}

^{5. CNBC.com, February 5, 2025}

^{6. The Wall Street Journal, February 6, 2025}

^{7.  The Wall Street Journal, February 7, 2025}

^{8. MarketWatch.com, February 4, 2025}

^{9. MarketWatch.com, February 5, 2025}

^{10. The Wall Street Journal, February 7, 2025}

^{11. IRS.gov, February 23, 2024}

^{12. Healthline, October 3, 2024}