S&P 500 steady as US debt soars past defense spending. Here’s what major has happened in the last seven days in charts.
S&P 500 Corrections Are Generally Good Buying Opportunities
Goldman Sachs (NYSE:GS) data show that there have been 21 stock market corrections of 10% since 1980. Performance over the following 12 months varies according to the economic situation. When declines of over 10% have occurred outside of recessions, performance over 1, 3, 6, and 12 months has been relatively solid.
Conversely, rebounds are less pronounced when declines occur during recessions. These statistics suggest that S&P 500 corrections may represent attractive buying opportunities for investors.
Meanwhile, interest charges on the US national debt reached a record $1,178 billion over the past 12 months, an increase of 142% over the past 4 years. The US government now spends more on interest on its debt than on national defense.
Source: Charlie Bilello
Also, US inflation for the month of February came in below forecasts: the headline consumer price index slowed to 2.8% in February from 3% in January, its lowest level since November 2024, while the core CPI index moderated to 3.1%, its lowest level since April 2021. Housing inflation is slowing, and airfares and pump prices are also declining. Please note, however, that the data does not yet reflect the impact of tariffs.
Source: HolgerZ, Bloomberg