Markets gained between Feb. 27 and March 4 as investors digested key economic data.

Markets closed in the red on Tuesday in anticipation of forthcoming inflation data which could affect the Federal Reserve’s decision to cut rates in 2024. The Dow Jones Industrial Average decreased 0.3%, the S&P 500 added 0.2% and the Nasdaq added 0.4%

The Utilities Select Sector and the Communication Services Select Sector rose 1.9% and 0.8%, respectively. 

The Chicago Board Options Exchange Volatility Index can be used as a gauge for investor sentiment relating to the equities market. The index added 2.4% to a value of $13.76 on Tuesday.

By Wednesday’s close, the three major indexes lost as investors digested fourth quarter gross domestic product data. The Dow lost 0.1%, the S&P 500 lost 0.2% and the technology-heavy Nasdaq lost 0.6%.

The Bureau of Economic Analysis reported that GDP grew at a rate of 3.2% in the fourth quarter of 2023. Investors were rather pessimistic about the implications of the reading since it was revised down from 3.3%.

The Real Estate Select Sector, the Communication Services Select Sector and the Health Care Select Sector added 1.3%, 0.7% and 0.5%, respectively.

The CBOE Volatility Index rose 3.1% to $13.84.

The three major indexes closed in the green on Thursday following the release of the personal consumption expenditure reading for January. The Dow increased 0.1%, the S&P 500 increased 0.5% and the Nasdaq increased 0.9%.

The Bureau of Economic Analysis announced that PCE rose 2.4% month over month for January.

Despite recording a rise in PCE, markets continued to rally to close out February. The rally was largely driven by demand for technology stocks.

The Technology Select Sector, the Communication Services Select Sector and the Real Estate Sector added 1.1%, 0.9% and 0.8%, respectively.

The Department of Labor detailed jobless claims increased 13,000 to 215,000 for the week ended Feb. 24.

Markets closed higher on Friday, looking to start March on a positive note. The Dow climbed 0.2%, the S&P 500 climbed 0.8% and the Nasdaq climbed 1.1%.

The Technology Select Sector and the Energy Select Sector added 1.8% and 1.2%, respectively.

By Monday’s close, the three major indexes closed in the red following investor pessimism regarding the future of interest rate cuts. The Dow fell 0.3%, the S&P 500 fell 0.1% and the Nasdaq fell 0.4%.

For the upcoming week, investors should look toward Fed Chair Jerome Powell’s Congressional Testimony. As the Fed contemplates the future of interest rate cuts, investors should structure additional exposure to the Real Estate and Utilities sectors into their portfolio.