Key Events to Watch in [Week] & Their Market Impact

As we approach the week of February 17, 2025, several pivotal events are poised to influence global markets. Here’s what investors should monitor:

1. U.S. Economic Indicators

Housing Starts Report (Wednesday): The Commerce Department will release data on new residential construction for January. Following December’s increase to nearly 1.5 million starts, January is projected to see a slight decline to 1.39 million. This metric offers insights into the housing market’s health and broader economic momentum.
Federal Reserve Meeting Minutes (Wednesday): The Federal Reserve will publish minutes from its latest policy meeting, providing clarity on its decision to maintain the benchmark interest rate. Investors will scrutinize these minutes for indications about future monetary policy, especially in light of a stable labor market, persistent inflation, and ongoing tariff uncertainties under the Trump administration.

2. Corporate Earnings

Walmart (Thursday): The retail giant is set to announce its fourth-quarter results, encompassing the crucial holiday season. Analysts anticipate earnings of 65 cents per share on $180 billion in sales, reflecting consumer behavior amid inflationary pressures. Notably, Walmart’s stock has surged 85% over the past year, underscoring its resilience in a challenging retail environment.
Alibaba and Baidu: These Chinese tech behemoths will report earnings this week, offering a window into China’s economic landscape and the tech sector’s performance amid global trade tensions. Read more: Earnings Calendar for This Week: Stocks to Watch and Forecast

3. Global Economic Data

UK Inflation and Wage Growth: The UK’s January inflation rate is expected to rise to 2.8% from 2.5%, influenced by factors like the introduction of VAT on private school fees and increased airfares. Additionally, wage growth data is projected to show an increase to 5.9% in the three months leading up to December. These figures could impact the Bank of England’s monetary policy decisions, especially following its recent interest rate cut.
Eurozone Business Activity: The composite Purchasing Managers’ Index (PMI) for the Eurozone is anticipated to show a slight improvement, with a reading of 50.5. This data will be crucial for European Central Bank policymakers, particularly given the current economic slowdown and emerging disinflation signals.

4. Geopolitical Developments

Trade Relations: The global community is closely monitoring the Trump administration’s proposed tariffs on aluminum and steel imports. The European Union has deemed these tariffs unjustified and economically harmful, emphasizing the importance of a unified response. These developments could have significant implications for international trade dynamics and market sentiment.

Market Snapshot

As of February 15, 2025, the U.S. stock market has exhibited resilience:

S&P 500 Index: Nearing all-time highs, reflecting investor optimism.
Nasdaq and Dow Jones: Both indices are following closely, indicating broad market strength.

Investor Takeaway: The upcoming week is laden with events that could sway market trajectories. Staying informed and agile will be essential for navigating the potential opportunities and challenges these developments may present.