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This Week’s Market Recap… 📊

The market reached all-time highs on Wednesday, with the S&P 500 ending the day above 6,125 for the first time ever. Despite the constant news headlines and political back-and-forth, it's a positive sign that the market continues to reach record highs. The S&P 500 is already up 4.24% this year, and some strategists are beginning to rethink their year-end price targets.

Economic data was relatively light this week; however, we did get housing starts and jobless claims. Single-family housing starts came in lower than expected—8.4% below December—continuing the trend of the ongoing housing recession. I believe housing will remain stagnant or decline further if mortgage rates stay elevated. Jobless claims were slightly higher than expected but not high enough to raise major concerns.

Earnings season is wrapping up, and the main report we were watching this week was Walmart. Over the past year, Walmart has rallied more than 70% as consumers shifted from other retailers like Target in search of better value. While Walmart reported solid earnings, it provided weak guidance, causing the stock to decline 6.5% on Thursday. This pullback is warranted after Walmart's massive run over the past year. However, I wouldn’t read too much into the weak guidance—Walmart typically guides conservatively and then outperforms throughout the year.

Overall, the market looks to be in good shape, and this year will be all about earnings growth. Over the past two years, we saw earnings growth, but multiple expansion was the main catalyst for stock gains. Many strategists and investors warned this could become a headwind, potentially leading to a market pullback. The good news is that earnings are now growing, meaning multiples don’t need to expand for stock prices to rise. We remain bullish on the market and believe the S&P 500 will hit 7,000 by year-end.

Have a wonderful weekend!!

Top ETFs on our Radar… 📈

$VOO became the biggest ETF in the market this week, taking over $SPY. $VOO, the Vanguard S&P 500 ETF, is a low-cost index fund that tracks the performance of the S&P 500, offering broad exposure to the largest U.S. companies. With a low expense ratio of 0.03%, it’s a popular choice for long-term investors seeking diversified growth.

Tune in every Monday and Friday for in-depth Market Analysis, Recaps, and a featured Stock & ETF.

Thanks for reading and have a great week!

-Ryan

@Theinvestingauthority