Fourth-quarter gross domestic product (GDP) was revised higher in its final reading, from 2.5% to 2.9% annualized growth. Nonresidential investment and consumer spending contributed most, while residential investment detracted. Economists believe the U.S. economy remains on track to hit 3% annual growth in 2018, driven by tax reform and increased government spending.
After generating the best January performance in more than 20 years, the S&P 500 Index turned negative earlier this month—erasing its year-to-date gains before ultimately entering “correction” territory when it fell as much as 10% from its recent peak. On the fixed income side, however, investors have been more comfortable to hold risk, resulting in credit-quality spreads remaining close to their narrowest levels of the year.