Politics have driven the stock market for the last few months. The question over whether Trump will be able to do what he promised has caused some decent market fluctuations since November. Lately, the roller coaster ride has been driven by economic data and earnings.
Data has been less than stellar and several key economic metrics, such as inflation and manufacturing, have slipped in recent weeks. While still showing bullish trends, the data picture is becoming a bit murkier. We simply aren’t cooking as hot as we were before. Likewise, earnings continue to be positive with the caveat of lower revenues and guidance figures.
These factors culminated this week when the Federal Reserve decided to keep interest rates the same after the weak data showing.
In the end, stocks have continued their listless wait-and-see approach. Maybe we should heed the adage and “sell in May and go away.”
Check out last week’s Market Wrap here.