S&P 500 Erases Year-to-Date Gains as Focus Shifts to Major Corporate Earnings

The S&P 500 Index experienced a sharp retreat last week, effectively wiping out all gains recorded since the start of the year. The index hit a low of $6,835, falling from its recent highs of $7,000 despite relatively stable macroeconomic indicators. Recent data showed the US economy added 130,000 jobs in January, while the unemployment rate edged down to 4.3% and the headline Consumer Price Index (CPI) cooled to 2.4%. Investors are now pivoting their attention to the upcoming quarterly earnings reports from retail and tech giants, including Walmart, Carvana, and eBay. These corporate results will be pivotal in determining whether the market can regain its footing or if further downward pressure persists. The shift in sentiment suggests that corporate health is now taking center stage over cooling inflation data.