Early last week, the Dow Jones Industrial Average moved above 50,100 for the first time, while the S&P 500 and Nasdaq Composite also advanced before sentiment shifted.

Concerns around artificial intelligence–related disruption and weaker guidance from select technology firms weighed on markets. The delayed January jobs report and January consumer price index both signaled a less supportive backdrop for rate cuts. December retail sales showed softer consumer spending, and uncertainty surrounding a potential U.S. government shutdown added to volatility and complicated the Federal Reserve’s policy outlook.

Next week features a shortened trading schedule due to Presidents’ Day, which may reduce liquidity and heighten sensitivity to news. Key data releases include January retail sales and housing starts, offering insight into consumer demand and housing activity. With markets already pricing in potential rate cuts, stronger-than-expected readings could moderate expectations for policy easing, while weaker data may reinforce accommodative outlooks later in the year. Corporate earnings across consumer, technology, and industrial sectors, along with geopolitical developments, are also expected to influence the market sentiment.

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