This week’s economic scene revolved around inflation data, with the CPI rising by 2.9% year-over-year, slightly above expectations due to a spike in energy prices.

Meanwhile, core CPI advanced by 3.2% year-over-year, below forecasts of 3.3%. This outcome encouraged investors, amid speculation that the Federal Reserve may have additional room to cut rates if necessary. Markets also got a lift from better-than-expected fourth-quarter earnings reported by major banks—JPMorgan Chase, Wells Fargo, Goldman Sachs, and Citigroup—alongside strong retail sales that signaled continued consumer spending.

Turning to next week, the focus will shift to President Trump’s inauguration on Monday, although the holiday-shortened week due to Martin Luther King Day will keep trading sessions limited. Potential policies, such as tariffs, may weigh on market sentiment, but existing home sales will be the main economic data release to watch. With earnings season in full swing, uncertainty over the incoming administration’s agenda could fuel additional market volatility.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.