S&P 500’s Big Drop and Rebound, Fresh Tariffs Coming, and Key Jobs Data Ahead

Hey there, Market Mastery crew! 👋

If you blinked this week, you might’ve missed some serious market action.

We started with a rough slide that wiped out the S&P 500’s gains for the year, only to see a sharp bounce back on Friday.

That left traders wondering — was that a temporary breather, or a sign of more strength ahead?

On top of that, we got fresh updates on GDP, unemployment claims, and the Fed’s favorite inflation gauge, all giving us a clearer view of where the economy stands right now.

Let’s break it all down — fast and simple.

S&P 500's Midweek Dip

The week kicked off with the S&P 500 sliding steadily from Monday through Thursday, wiping out all the year’s gains.

Concerns over economic growth, sticky inflation, and potential trade tensions kept investors on edge.

Thursday’s 1.6% drop marked the fifth decline in just six sessions.

Friday's Rebound

Despite the rocky ride, markets staged a comeback on Friday, with the S&P 500 rebounding 1.6%, closing at 5,954.50.

The spark?

Investors responded positively to data showing a slight cooling in inflation — offering a glimmer of hope that price pressures could be easing.

Preliminary GDP

Digging into the data, the Preliminary Q4 GDP showed the U.S. economy grew at 2.3%, slower than the previous quarter’s 3.1%, but still supported by consumer and government spending.

Imports fell, which gave GDP a bit of a lift.

Unemployment Claims Hit a Three-Month High

The labor market showed signs of softening, with jobless claims rising to 242,000, the highest in three months.

That’s a 22,000 increase from the previous week and well above the 220,000 expected by analysts.

Core PCE Inflation Eases Slightly

On the inflation front, the Fed’s favorite gauge — the core PCE price index — rose 0.3% in January, matching expectations.

On a 12-month basis, core PCE came in at 2.6%, a slight improvement from 2.9% in December.

This small step down signals some progress in cooling inflation, though still above the Fed’s 2% target.

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Here’s What’s Coming Up Next Week

President Trump Addresses Congress

On Tuesday, President Donald Trump will speak to a joint session of Congress.

And you can bet traders will be tuning in for any new policy announcements — especially on trade and the economy.

New Tariffs Kick In

Also on Tuesday, tariffs on products from Canada and Mexico go live, along with a doubling of existing tariffs on Chinese goods.

These moves could ramp up trade tensions and rattle supply chains.

February Jobs Report

The latest nonfarm payroll data drops Friday, giving us a fresh snapshot of the labor market.

Earnings Reports to Watch

Some big names are set to report earnings, including Broadcom, Costco, and Target.

Their results will offer clues about consumer spending, retail health, and tech sector strength.

Key Economic Reports

There’s plenty of data coming our way, from consumer credit levels to the U.S. trade balance, factory orders, and PMI survey results.

All of these will help paint a clearer picture of how the economy is holding up under current conditions.

This week was another perfect example of why staying informed is half the battle.

From economic data drops to market mood swings, traders and investors are navigating a lot of moving parts — and it’s not slowing down anytime soon.

Keep your eye on next week’s data releases, stay flexible, and remember — the best traders adapt, not predict.

Until next time, stay sharp and trade smart! 🚀