3 Economic Events That Could Affect Your Portfolio This Week, January 27-31, 2025

Stock clocked in their second consecutive weekly gain and the best start to a presidential term since Ronald Reagan was sworn in to office in 1985. The S&P 500 (SPX) was up by 1.74% for the holiday-shortened week, while the Dow Jones Industrial Average (DJIA) jumped by 2.15%. Meanwhile, the tech benchmarks Nasdaq Composite (NDAQ) and Nasdaq-100 (NDX) rose by 1.65% and 1.55%, respectively.

Although the DJIA led the gains this week, it was the S&P 500 that reached a new all-time high on Thursday. Despite Friday’s dip, achieving the first record of the year is expected to bolster investor sentiment moving forward.

President Trump appears to be enjoying a honeymoon with the stock markets, as investors react positively to his statements and actions. On his first day in office, Trump signed a record 26 executive orders, addressing areas such as energy, immigration reform, and technology. Many of these were more moderate than anticipated, which was welcomed by the markets. Trump’s statements on tariffs were also much more moderate than feared, further easing investor anxiety.

Trump’s remarks on decreasing energy costs and urging OPEC to reduce oil prices weighed on energy stocks but boosted overall market sentiment. However, a key driver of optimism was the President’s pro-tech agenda. This was reflected in an executive order directing agencies to craft policies ensuring U.S. dominance in AI, as well as the announcement of a new AI infrastructure initiative, project “Stargate.”

The Administration’s next steps are expected to focus on Trump’s pro-growth agenda, including deregulation – particularly in the financial sector – and tax cuts. While these measures require Congressional approval and will take time, progress could enhance market sentiment, spur capital-market activity, and eventually strengthen corporate bottom lines.

Trump pledged to demand Federal Reserve rate cuts following potential declines in oil prices. While markets received this news favorably, the likelihood of success remains uncertain. Economic reports paint a picture of overall health, tempered by pockets of weakness, including housing, services PMI deceleration, and recent signs of infirmity in the labor market. Consumer sentiment dropped for the first time in six months as inflation expectations surged to their highest since May. The Federal Reserve has signaled hesitancy about further rate cuts, and renewed easing may depend on favorable inflation trends and clarity on government spending.

Three Economic Events

Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.

» Q4 2024 GDP Growth Annualized (advance estimate) – Thursday, 01/30 – This report will provide an early insight into changes in GDP from the previous quarter. Economists project that the pace of growth slowed to 2.7% from Q3’s 3.1% annualized rate. A higher-than-forecasted reading could further weigh on the expectations for Fed rate cuts, while a lower-than-expected reading could provide the central bank with data to support rate reductions.

» December’s Pending Home Sales – Thursday, 01/30 – This report is a leading indicator of trends in the U.S. housing market and reflects contract activity in the market for existing homes, since this market accounts for 85% to 90% of U.S. home sales annually. It accurately reflects economic conditions and consumer confidence, and is closely watched by investors and policymakers for clues about the health of the economy.

» December’s Core Personal Consumption Expenditures (Core PCE) – Friday, 01/31 – This report reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy. FOMC policymakers use the annual Core PCE Price Index as their primary inflation gauge.

For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.