Market levels rose this week and closed the month of November at all-time highs. Will this trend continue, or will the tide subside?
Monday S&P 500 0.30% | NASDAQ 0.27%
Markets began the week higher, building on momentum from the prior week. Notably, the Russell 2000 Index, which represents US-Based Small-Cap companies, drove into record territory which often signals an optimistic outlook for the broader economy as smaller companies gain strength.
Tuesday S&P 500 0.57% | NASDAQ 0.63%
Federal Reserve minutes from their November meeting were released, indicating they’ll be pursuing a gradual approach to future rate cuts. Markets moved higher, leaning in favor of larger-technology companies while consumer confidence increased from the last reading.
Wednesday S&P 500 -0.38% | NASDAQ -0.60%
The Federal Reserve’s preferred inflation index went up slightly in October and probability projections of another federal funds rate cut on Dec 18th settled at a 70% chance (via the CME FedWatch tool). More and more data in labor and wages support a strong economic engine in the near future. Markets closed lower after the early week run up ahead of the Thanksgiving Holiday.
Thursday S&P 500 0.00% | NASDAQ 0.00%
Happy Thanksgiving! – Markets Closed
Friday S&P 500 0.56% | NASDAQ 0.83%
Black Friday sent shoppers shopping as well as sent markets higher. Wednesday’s pullback was erased as the last trading day of November ended. Market participants were glad to see multiple indicators in the positive on the week.
Conclusion S&P 500 1.06% | NASDAQ 1.13%
In a Holiday-shortened trading week, markets proved not to be lulled to sleep to close out November. The S&P500 rose 5.7%, the DOW Jones was up 7.5% and the NASDAQ ended 6.2% higher (for the month!). With key data coming in weekly, there are many reasons to be grateful for the growth so far this quarter. In a future value-oriented economy, most attention is looking ahead to policy making by the incoming administration and impacts on trade, immigration, and corporate balance sheets. The 10 Year U.S. Treasury fell to its lowest level since before the election, indicating optimism of the direction of interest rates. As markets inherently ebb and flow, we will continue to be waiting for a potential pullback. The case for a correction-level shift (10% drop) before the end of the year seems less likely barring any geopolitical tsunamis or seismic shift in monetary policy. In a week full of Thanksgiving feasts, markets appeared to be wide-awake on 4th quarter optimism.
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