Good evening. The S&P 500 ended the week up 1.5%. Here are the top stocks to watch this week, and what’s moving the markets.

👋 Also welcome to the 333 new members who have joined since last Sunday! If you haven’t subscribed yet, join other traders & financial enthusiasts who have decided to get smarter with Illyrian News.

Top Stocks & Setups To Watch This Week

• $AMZN
Break above 231.18 🎯 234.81 & 238.83
• $GOOGL
Break above 188.20 🎯 192.75 & 197.67
• $MCD
Break above 311.59 🎯 314.69 & 317.90
• $TSLA
Break above 361.53 🎯 380.55 & 394
• $ADBE
Break below 456.80 🎯 448.29 & 439
• $DIS
Break above 110.82 🎯 112.68 & 115.19

KV’s S&P 500 Levels

Weekly Market Recap

Inflation Pressures Persist

Inflation remains high despite progress since the post-pandemic surge. The January CPI report came in hotter than expected, with core inflation ticking up to 3.3%, keeping pressure on the Fed. While some price spikes may be temporary, consumers still feel the strain of cumulative cost increases. We don’t expect a major inflation resurgence, but price gains could remain above the Fed’s target, slowing the path to rate cuts.

Fed Stays Patient

The Fed remains cautious, signaling no rush to cut rates as inflation lingers. Chair Powell reaffirmed that policy remains restrictive, meaning the central bank can afford to wait rather than raise rates again. Tariff uncertainty looms, with Trump’s planned tariffs set for April 1. While trade policy may impact inflation, the Fed is likely to maintain its patient approach, keeping markets on edge as rate-cut expectations shift.

Market Leadership Rotation

The Magnificent 7 stocks are losing steam after two years of dominance, while earnings growth for the broader market is accelerating. Financials, health care, and real estate are driving strong profits, signaling a shift in market leadership. European stocks, often overlooked, are also gaining strength, outperforming the S&P 500 year-to-date. While U.S. equities remain strong, diversifying into underpriced sectors and international markets may present new opportunities.

Coming Up…

Important economic releases this week include S&P Global PMI data and building permits for January. On the earnings front, BABA, CVNA, WMT, OXY, and BIDU are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Trump directs Treasury to stop making pennies.
• DeepSeek sparks hope for renaissance in China’s tech megacaps.
• Bitcoin hoarder’s stock soars 4,800% in Japan on crypto rally.
• France unveils 109-billion-euro AI investment as Europe looks to keep up with U.S.
• BYD stock vs. Tesla stock: Which is the better self-driving car company to buy?

Trading Quote Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #7 | February 16, 2025

Like Illyrian News? Share it with your friends, family, and colleagues who need to stay on top of the market and earn awesome rewards!

Your referral count: 0, only 1 referral away from winning 50% Off First Month Coupon From KV’s Live Trading Room.

Or copy & paste your referral link to others:
https://news.illyrianoptions.com/subscribe?ref=PLACEHOLDER

Like getting this newsletter, but feel like you could learn more from KV & the team? Find out some of the frameworks and strategies that KV’s private mentorship clients are using to hit their trading goals. Book a free discovery call here.

Want to sponsor this newsletter? Reply to this email with the word PARTNER and we’ll get back to you for further details.