Market Summary Week Ending 26/02/2023

Figures released in the US this week showed a stronger-than-expected increase in prices for January. The Core Personal Consumption Expenditures (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy, making it a leading economic indicator.

The PCE rose by 0.6% in January, and 4.7% from the prior year, coming in above economists’ expectations. This raises investor concern that both UK and US central banks will continue to raise interest rates, their main tool for tackling inflation.

As a result of the reduction in investor confidence, all three major US indices ended the week with their biggest losses of 2023 so far. The S&P 500 was down 2.7%, marking its worst week since December. The Dow fell almost 3.0% across the week — its fourth straight losing week, and the Nasdaq closed 3.3% lower, disrupting its strong start to 2023.

UK markets also struggled across the trading week. After a positive start to 2023, the FTSE 100 logged a decline of 1.6%, its worst showing since mid-December.

Please note: for this weekly summary, we focus on the major indices within the financial markets such as the FTSE 100 (UK) and the Dow Jones and NASDAQ (US) to provide a factual account of what has happened within a certain index. Performance figures quoted are factual from the previous week’s trading and this summary is for commentary purposes only. 

The performance of these indices is not a representation of an individual fund or portfolio. Past performance is no guarantee of future returns. The value of your investment can go down as well as up. You could get back less than you originally invested.