For week ended 2/9/25
After a Super Bowl that was just interesting enough to keep us from switching to the Puppy Bowl, I trust you’re ready to shake off the weekend and get back at it. So, let’s dive in.
Starting with some good news: the job market keeps chugging along like a freight train on an express track. The economy added another 143,000 jobs in January, and the unemployment rate inched down to 4.0%—the third straight month of improvement, dropping from 4.2% in November to 4.1% in December, and now here we are. Both figures came in stronger than expected, adding fuel to the idea that the “animal spirits” stirred up by last year’s elections might actually have some bite.
Meanwhile, despite the usual chaos radiating from Washington, D.C., the economy at large is moving along just fine and markets reflected that confidence last week, with traditionally safe- haven assets like cash and fixed income notching gains. Domestic and foreign bond markets climbed 40 basis points, while liquid alternatives were flat. Global real estate edged up 90 basis points, but the real MVP was commodities, which pulled off a solid 2.0% gain. Oh, and by the way, domestic stocks lost 20 bps.
Looking ahead, the week’s big-ticket economic events include the latest inflation data on Wednesday and January’s retail sales report on Friday—both of which could set the tone for the next market mood swing. And for those still nursing a post-Super Bowl hangover, whether from the game or the snacks, I hope recovery is swift. Let’s hit the ground running. Good morning, and have a great week!
Interesting data point of the week.
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