Last Week’s Summary
- S&P 500 Index rose 0.69%
- International Equities rose 1.47%
- Emerging Markets rose 1.03%
- U.S. 10-Year Treasury Yield rose to 4.62%
- Durable Goods fell to -1.1%
- Initial Jobless Claims fell to 219k
- New Home Sales rose to 664k
What to Watch for This Week
- M, 12/30/24 MNI Chicago PMI
- T, 12/31/24 FHFA House Price Index
- W, 1/1/25 Markets will be closed for the New Year’s Day Holiday
- Th, 1/2/25 MBA Mortgage Applications, Initial Jobless Claims, S&P Global US Manufacturing PMI
- F, 1/3/25 ISM Manufacturing
Weekly Market Recap
A selloff in the world’s largest technology companies weighed on stocks in the closing stretch of an otherwise stellar year. In another session marked by low trading volume-which often amplifies market moves-the S&P 500 fell 1.1%, while the Nasdaq 100 slipped 1.4%.
Although every major industry faced losses on Friday, Tech Mega-Caps bore the brunt of the decline. This followed a blistering surge in 2024, during which the so-called “Magnificent Seven” accounted for more than half of the U.S. equity benchmark’s gains. The Yield on 10-Year Treasuries climbed four basis points to 4.62%.
This year’s equity rally has set lofty expectations for stocks, which could become a significant hurdle to further gains in 2025. The challenge is particularly pronounced for tech stocks, given their substantial 2024 surge.
Analysts noted that while the current bull market, spanning from 2022 to the present, has been extraordinary, it is the second shortest and has the second smallest cumulative gains since 1928. Historically, late-cycle bull markets with premium valuations at the Two-Year mark have lasted an average of 38 months.
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.
