US markets recovery slows after Fed minutes

US stock market recovery slowed last week as Fed meeting minutes revealed policy makers considered continuing rate increases this year. The SP 500 gained 0.6% and the ICE dollar index rose 0.9%.

The SP 500 retreated every session except Thursday and Friday after reopening lower Tuesday following Presidents’ Day holiday. It extended losses 0.6% Wednesday as existing home sales fell 3.2% in January. The broad market inched up 0.1% Thursday and finished up 1.6% Friday after Fed’s semiannual policy report indicated the central bank might not shift to more aggressive monetary policy stance this year.

The ICE dollar reversed previous week’s losses advancing in every session except Thursday last week. It rose 0.6% Tuesday as yields climbed boosted by the auction of $179 billion of Treasury bills and notes. 3 The dollar index advanced 0.5% Wednesday as the Fed minutes showed the central bank won’t delay raising interest rates further and the Manufacturing PMI rose from 55.5 to 55.9 in February , a nearly 3½-year high. The dollar erased previous day’s gains Thursday, rebounding 0.2% Friday.

Federal Reserve Chairman Jerome Powel’s Congress testimonies will be watched closely this week to gauge how aggressively the central bank will likely pursue monetary tightening this year. Powell will speak before the House Financial Services Committee on Tuesday and the Senate Banking Committee Thursday. The second estimate of fourth quarter US GDP Wednesday and the official and Caixin purchasing managers’ indexes on Wednesday and Thursday are the major reports anticipated this week. BASF, Standard Chartered, Anheuser-Busch InBev and Peugeot are among the companies reporting earnings this week.