Last Week’s Summary
- S&P 500 Index rose 4.69%
- International Equities rose 0.62%
- Emerging Markets rose 1.22%
- U.S. 10-Year Treasury Yield fell to 4.30%
- Initial Jobless Claims fell to 221k
- FOMC cut the benchmark rate by 0.25%
- U. of Mich. Sentiment rose to 73
- U. of Mich. 1-Yr Sentiment fell to 2.6%
- ISM Services Index rose to 56
What to Watch for This Week
- M, 11/11/24 VETERANS DAY
- T, 11/12/24 NY Fed 1-Year Inflation Expectations
- W, 11/13/24 MBA Mortgage Applications, CPI, CPI Core
- Th, 11/14/24 Initial Jobless Claims, PPI, PPI Core
- F, 11/15/24 Empire Manufacturing, Industrial Production
Weekly Market Recap
Uncertainty has been temporarily resolved, leading to a robust market response as stocks surged at the end of their strongest week in 2024.
This positive momentum was fueled by strong consumer sentiment data and optimism surrounding newly elected President Donald Trump’s pro-growth policies, which are expected to continue benefiting Corporate America.
Equities advanced for the fourth consecutive session, with the S&P 500 reaching its 50th record high this year and posting a 4.7% weekly gain. Tesla Inc. spearheaded the rally with a dramatic surge that pushed the electric vehicle maker back above the trillion-dollar valuation mark. Defensive stocks took the lead on Friday, rebounding after reaching “oversold” levels.
According to Bank of America Corp., an impressive $20 billion flowed into U.S. equity funds on the day Trump secured victory. Small-cap stocks, anticipated to benefit from Trump’s protectionist stance, saw their largest inflow since March.
The S&P 500 briefly surpassed the 6,000 mark, while 10-year Treasury Yields fell three basis points to 4.30%. Meanwhile, amidst the presidential transition, the Federal Reserve held the first of its final two meetings of the year and voted unanimously to lower the benchmark interest rate by 0.25%.
Market watchers will gain further insight into the Fed’s potential actions at its December meeting when updated CPI and PPI data are released on Wednesday and Thursday, respectively.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
