Weekly Market Bullets

for the week ending 12/13/2024

• US Equity Markets saw some profit-taking last week as interest rates jumped. The S&P 500 fell 0.6% for the week to bring its gains for the year to 26.9%. The Nasdaq touched 20,000 for the first time in history and closed the week up 0.3% on continued strength in technology stocks to bring its gains for the year to 32.7%, while the Russell 2000 (small cap stocks) declined 2.6% for the week to bring its gains for the year to 15.8%.

• Global Equity Markets were mixed last week, as disappointing economic growth out of the UK offset hopes for more stimulus out of China. Developed Markets were down 1.6% for the week and are now up 4.7% for the year. Emerging Markets rose 0.2% for the week to bring its gains for the year to 8.2%.

• Inflation data remain stubborn in November, driving interest rates higher. The Consumer Price Index (CPI) for November was up 2.7% from a year ago, up from 2.6% in October. Core CPI, which excludes food and energy prices, was up 3.3% from last year, in line with October's 3.3% increase. As a result, the yield on the US 10-Year Treasury closed at 4.40% vs. 4.15% the prior week. Despite this, investors believe there is a 96% chance that the Fed lowers interest rates by another 0.25% at its meeting later this week.

• November saw the biggest increase in Small Business Optimism in 30 years. The National Federation of Independent Business (NFIB), which represents small businesses, indicated that its Small Business Optimism index for November rose to 101.7, up from 93.7 in October. The 8 point increase is the largest month-over-month increase in 30 years. The primary reasons for the surge included certainty around the election results and hopes for more growth-friendly tax and regulatory policies from the new Trump Administration.

Market Data

for the week ending 12/13/2024