2/24/25 Weekly Market Commentary

What happened last week…?????????

Meeting minutes were released from the Federal Reserve’s January decision, where interest rates were unanimously left unchanged at 4.25% to 4.50%. According to the minutes, a few participants of the Federal Open Market Committee (FOMC) believe the “current target range for the federal funds rate may not be far above its neutral level.” Factors that could influence inflation include, “The effects of potential changes in trade and immigration policy as well as strong consumer demand.” The next FOMC meeting takes place on March 18-19.?

Broadcom (AVGO) is reportedly interested in obtaining Intel’s (INTC) chip design and marketing segment. The Wall Street Journal report also mentions that Taiwan Semiconductor Manufacturing (TSM) has potential interest in Intel’s factories. Talks are said to be informal at this time.

Apple (AAPL) unveiled a new, lower priced iPhone model (16e) at $599. While the iPhone 16e may have fewer features compared to more expensive models it can run Apple Intelligence, the company’s AI system. The move comes as the company looks to increase iPhone sales, which saw sales dip 1% year-over-year in the December quarter.

Palantir (PLTR) stock was lower last week after a report that the U.S. defense budget could be reduced by 8% per year for the next five years. Palantir has lucrative contracts with the U.S. government that could potentially be reduced under such plan. The stock is up about 350% over the past year. ?

Existing home sales for January missed expectations (4.12 million) as it decreased to 4.08 million from the upwardly revised 4.29 million (from 4.24 million). It is the first monthly decline since September 2024.

?Happening this week…

On Wednesday, new home sales for January are expected to decrease to 690,000 from 698,000, which was the highest reading since last September (726,000).

On Thursday, the GDP growth rate (second estimate) for Q4 2024 is expected to remain at 2.3%, which was a decrease from the Q3 2024 rate of 3.1%. The Q2 2024 rate was 3.0% and the Q1 2024 rate was 1.6%, which was the lowest growth since the Covid pandemic.

Thanks for Reading

-The Rockline Team

Rockline Wealth Management (RWM) is a registered investment adviser located in Islip Terrace, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.

The information presented above is for informational purposes only and believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.