Last Week’s Summary
- S&P 500 Index fell -1.97%
- International Equities fell 3.43%
- Emerging Markets rose 0.26%
- U.S. 10-Year Treasury Yield rose to 4.52%
- The FOMC cut rates by 25 bps
- 3rd quarter GDP rose by 3.1%
- Initial Jobless Claims less to 230k
- Core PCE fell to 2.4%
What to Watch for This Week
- M, 12/23/24 Durable Goods Orders, Consumer Confidence, New Home Sales
- T, 12/24/24 Richmond Fed Manufacturing Index
- W, 12/25/24 Markets will be closed for the Christmas holiday
- Th, 12/26/24 GDP Annualized, Initial Jobless Claims, Existing Home Sales
- F, 12/27/24 Wholesale Inventories
Weekly Market Recap
U.S. markets had their worst week since mid-November, with major indexes falling after the Federal Reserve signaled a cautious approach to cutting interest rates in 2024. Treasury Yields rose for the second consecutive week as the Fed scaled back its projected rate cuts for 2025.
A steady stream of strong economic data validated the central bank’s stance, though November’s muted personal consumption expenditures reassured policymakers that inflation is cooling. Concerns over a potential government shutdown added to market jitters, as House Republicans proposed a bill to fund the government through March 14, provide disaster relief, and support farmers.
Despite the uncertainty, U.S. consumer sentiment improved for the fifth straight month in December, driven by growing optimism among Republicans post-election, while Democrats remained more pessimistic.
Crude oil prices posted a weekly loss, pressured by the Fed’s hawkish pivot and President-elect Donald Trump’s warning of tariffs on the EU unless they buy more U.S. oil and gas.
On the international front, China’s One-Year Bond Yield fell to 1% for the first time since the global financial crisis, as traders bet on further monetary easing.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
The Best Invest Advise EVER! $2.7 billion Asset Manager:
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.
