Market Turbulence, In-sight Abundance

Last week, financial markets experienced some turbulence, but the overall trend remained positive. The S&P 500 saw notable strength in the Real Estate and Technology sectors, while Energy and Consumer Discretionary stocks struggled to keep pace. The economic calendar delivered mixed signals, but one major technology company reported outstanding earnings, sending its stock price soaring.

Weekly Performance

Data Source: Factset®        Performance Period:      2/3/2025  to 2/7/2025

From an economic standpoint, labor market data took center stage, a critical factor in the Federal Open Market Committee’s (FOMC) ongoing efforts to balance labor stability and inflationary pressures. The week began on a positive note with December’s construction spending increasing by 0.5%. However, manufacturing data presented a more-nuanced picture. The Institute for Supply Management’s (ISM) manufacturing index for January came in at 50.9%, indicating marginal expansion, but factory orders saw a decline of 0.9%, signaling potential weakness in industrial activity. Labor market figures painted a complex landscape. December’s job openings fell short of expectations, totaling 7.6 million instead of the anticipated 8 million. However, January’s ADP employment report defied forecasts by revealing an increase of 183,000 jobs, significantly surpassing the projected 150,000. Meanwhile, initial jobless claims at the start of February exceeded expectations, reaching 219,000, raising concerns about potential softening in the labor market. The U.S. employment report for the month was less impressive, with only 143,000 jobs added, falling short of estimates. Nevertheless, the unemployment rate ticked slightly lower to 4%, offering a modest silver lining. Wage growth provided another bright spot, with hourly wages exceeding expectations by rising 0.5%.

Looking ahead, the upcoming economic calendar will provide additional insights into the state of the economy. The NFIB Small Business Optimism Index will offer a gauge of sentiment among small business owners, an essential component of overall economic growth. Inflationary data will also take the spotlight, with the Consumer Price Index (CPI) set for release, followed by the Producer Price Index (PPI), which will offer a glimpse into changes in input costs for businesses. The week will conclude with reports on retail sales, industrial production, and business inventories, shedding further light on consumer behavior and manufacturing output.

One of the most significant market stories last week was the impressive performance of Palantir Technologies. The “big data” and artificial intelligence firm has seen its stock price surge by over 50% since the beginning of the year, driven by exceptional earnings results. Over the past year, Palantir’s revenue has grown by an astounding 36%, as the company continues to expand its influence across both commercial and government sectors. Palantir’s ability to harness artificial intelligence and integrate it into practical business solutions has positioned the company as a key player in the rapidly evolving tech landscape. As industries such as engineering, power, banking, and automotive increasingly rely on AI-driven insights to streamline operations, Palantir is well placed to capitalize on this trend. The company’s technology is transforming the way businesses approach problem solving, replacing hours of manual work with near-instant, data-driven insights that improve efficiency and decision making.

Beyond its domestic success, Palantir is also experiencing international growth and renewing key contracts, further solidifying its long-term trajectory. The company’s continued expansion underscores the importance of thoughtful planning and strategic execution in an increasingly competitive market. Palantir’s success story serves as a testament to the value of preparation and foresight, principles that extend beyond the corporate world into everyday life. This sentiment is well captured in Proverbs 21:5: “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” Palantir’s rise is not a product of chance but the result of meticulous planning, patience, and strategic execution—qualities that are fundamental to achieving lasting success in any endeavor.

Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights

 Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Faithward Advisors LLC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Dream More, Plan More, Do More is a registered trademark of Faithward Advisors, LLC, Reg. U.S. Pat. & Tm. Off. Any opinions expressed in this forum are not the opinion or view of Faithward Advisors or American Portfolios Financial Services, Inc. (APFS). They have not been reviewed by either firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.