Volatility persisted this week as fresh economic concerns and mixed technology sector earnings influenced market sentiment.

President Trump initially imposed 25% tariffs on Canada and Mexico and 10% on China under the International Economic Emergency Powers Act, though he later paused these measures following constructive discussions on border security. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) revealed a decline in job openings to 7.6 million in December, below the roughly 8 million anticipated figure and seen as supportive of further Federal Reserve rate cuts. Additionally, artificial intelligence investments by major tech companies, including Google, impacted earnings, adding to further market volatility.

Looking ahead, the spotlight next week will be on inflation data with the release of the latest Consumer Price Index (CPI) report. The annual inflation rate in the US rose for a third straight month to 2.9% in December, up from 2.7% in November, suggesting a more complicated landscape for monetary policy. Federal Reserve Chair Jerome Powell’s testimony, along with upcoming Producer Price Index (PPI) data and retail sales figures — expected to show a modest 0.3% increase — may further guide market direction.

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