Last week, the markets remained volatile but mostly recovered from the earlier tech-induced plunge.

The Federal Reserve maintained its target range for the federal funds rate at 4.25%-4.5%, with Chair Jerome Powell emphasizing that it remains in no hurry to lower rates. Inflation stayed in the spotlight, as the core personal consumption expenditures (PCE) index, often cited as the Fed’s preferred measure, inched 0.3% higher in December.

Next week will be focussed on labor market health, with the Job Openings and Labor Turnover Survey (JOLTS) expected to show a robust number of openings. Attention will also turn to the official unemployment rate, which is currently above 4% but has started to edge lower, as well as to the ISM manufacturing and services PMI reports, both of which are anticipated to give a bullish yet mixed snapshot of the economy’s start to the year.

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