Last Week’s Summary
- S&P 500 Index fell 2.05%
- International Equities fell 2.95%
- Emerging Markets fell 4.45%
- U.S. 10-Year Treasury Yield fell to 4.43%
- Initial Jobless Claims fell to 217k
- CPI rose to 2.6%; CPI Core remained at 3.3%
- PPI rose to 2.4%; PPI Core rose to 3.1%
- Empire Manufacturing rose to 31.2
What to Watch for This Week
- T, 11/19/24 Housing Starts, Building Permits
- W, 11/20/24 MBA Mortgage Applications
- Th, 11/21/24 Initial Jobless Claims, Leading Index, Existing Home Sales
- F, 11/22/24 S&P Global US Manufacturing PMI, U. of Mich. Sentiment, U. of Mich. 1-Yr Inflation
Weekly Market Recap
Stocks declined, with the S&P 500 on track for its worst week in over two months as momentum behind “Trump trades” waned and investors anticipated a slower pace of policy easing by the Federal Reserve. The S&P 500 hovered near session lows, led by declines in tech stocks on Friday.
The initial excitement surrounding Trump’s pro-business agenda is fading as investors weigh the potential costs of his fiscal policies and their inflationary risks.
The likelihood of a quarter-point rate cut at the Fed’s December meeting dropped to just over 50%, down from 80% earlier in the week, following stronger-than-expected inflation data. Both headline and core producer inflation increased on Thursday, signaling that the Fed’s battle against inflation is far from over.
Bets on additional rate cuts were trimmed after Fed Chair Jerome Powell cautioned on Thursday that the central bank may take a more measured approach to easing policy.
On Friday, Boston Fed President Susan Collins affirmed that a December rate cut remains possible but stressed that future decisions will be data dependent. With limited major economic headlines expected next week, market momentum-whether up or down=may continue without significant reversal.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
