Stocks were mixed this week, driven by higher-than-expected inflation readings and varied earnings results.

In the 12 months through January, the Consumer Price Index (CPI) rose 3.0%, up from a 2.9% advance in December and marking the biggest gain since June 2024. Producer Price Index (PPI) also exceeded forecasts, reinforcing the view that rate cuts are less likely this year. Meanwhile, 65% of S&P 500 companies reporting quarterly results have registered an average 16% increase in earnings per share (EPS), providing some support for equities despite rising bond yields.

Looking ahead, next week’s key economic focal point will be the release of the latest Federal Open Market Committee (FOMC) meeting minutes. With inflation running higher and the central bank pausing rate cuts, expectations for a rate hike have increased. Investors will also watch housing data — aka building permits, housing starts, and existing home sales — alongside initial jobless claims, which have recently started to shift in a less favorable direction.

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