THE WEEK ON WALL STREET
Stocks ended a choppy four-session run in the green, with tech-led momentum earlier in the week prevailing over news of a slowing economy, sticky inflation, and geopolitical tensions. The S&P 500 Index advanced 1.07 percent, while the Nasdaq Composite Index rallied 1.51 percent. The Dow Jones Industrial Average inched up 0.25 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.75 percent.
FACT OF THE WEEK
On March 2, 1933, construction officially began on Australia's Sydney Opera House. The structure’s first performance came during construction in 1960, when singer and labor activist Paul Robeson climbed the scaffolding and sang to workers as they ate lunch.
MARKET MINUTE
Focus on Tech
Stocks kicked off the shortened trading week with a yawn as continuing investor angst over AI disruption in the software industry kept gains modest.
But tech-led market momentum picked up—including gains from lesser-known names—as investors digested minutes from the Fed's January meeting.
Stocks then came under pressure as investors fretted over geopolitical tensions in the Middle East and concerns about private credit in the financial sector.
Markets rallied on Friday after the Supreme Court struck down the White House tariffs. The news overshadowed a sticky inflation report and a disappointing update on Q4 gross domestic product (GDP), which was hurt by federal spending during the government shutdown.
Friday Focus
All week, the markets were eyeing the Friday economic updates and were a bit surprised at the timing of the tariff news.
GDP rose 1.4 percent in Q4, lower than the 2.5 percent expected and slower than the 4.4 percent pace in Q3. The slowdown reflected declines in federal and consumer spending.
While the Supreme Court's ruling on tariffs had been expected, the news still took investors by surprise when it arrived on Friday. The decision was widely expected, but the timing of the news was uncertain. Investors appeared to welcome the news, as companies may have greater pricing flexibility without tariffs.
FINANCIAL STRATEGY OF THE WEEK
Retirement Is a Beginning
How do you know you are psychologically ready to retire? As a start, ask yourself four questions.
One, is your work meaningful?
If it is emotionally and psychologically fulfilling, if it gives you a strong sense of purpose and identity, then there may be a voice inside your head telling you not to retire yet. You may want to listen to it.
It can be tempting to see retirement as a “finish line”: no more long workdays, long commutes, or stressful deadlines. But it is really a starting line: the start of a new phase of life. Ideally, you cross the “finish line” knowing what comes next, what will be important to you in the future.
Two, do you value work or leisure more at this point in your life?
If the answer is leisure, score one for retirement. If the answer is work, maybe you need a new job or a new way of working rather than an exit from your company or your profession.
An old saying says that retirement feels like “six Saturdays and a Sunday.” Fantastic, right? It is, as long as you don’t miss Monday through Friday. Some people really enjoy their careers; you may be one of them.
Three, where do your friends come from?
If very little of your social life involves the people you work with, then score another point for retirement. If your friends are mainly your coworkers, those friendships may be tested if you retire. Creating a financial strategy for retirement is important. But there are also other important factors, including your physical and mental health, your relationships with family and friends, your travels and adventures, and your outlets for expressing your creativity. Building a life away from work can be a plus.
Four, what do you think your retirement will be like?
If you think it will be spectacularly different from your current life, ask yourself if your expectations are realistic. If, after further consideration, they seem unrealistic, you may want to keep working for a while until you are in a better financial position to try and realize them or until your expectations shift. Ideally, you retire when you are financially, emotionally, and psychologically ready. Why you are retiring is as important as when you choose to retire. When you are motivated to retire, you see retirement as a beginning rather than an end.