Mixed Data, Mixed Results:
Stocks closed out last week on a mixed note, with losses at the beginning and end of the week offsetting midweek gains as investors assessed new inflation data.
The S&P 500 Index slipped 0.64%, while the Nasdaq Composite Index ticked up 0.34%. The Dow Jones Industrial Average dropped 1.82%. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 10/31/24 = 0)
Up & Down Week
Stocks fell broadly over the first part of the week. Leading chipmakers who produce semiconductors for artificial intelligence applications were under pressure after Chinese regulators announced an antimonopoly investigation.3
Investors breathed a sigh of relief Wednesday morning following news that consumer inflation in November was in line with expectations. Mega-cap tech stocks led the rally, with the Nasdaq closing above 20,000 for the first time. Meanwhile, the Dow fell as healthcare stocks came under pressure.4
Stocks remained in the trading range for the rest of the week on mild concerns about Thursday’s warmer-than-expected wholesale inflation report and a spending slowdown among lower-income consumers. The Dow registered its worst losing streak since 2020.5,6,7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Final Fed Meeting of 2024
The consumer price index ticked up to 2.7% on an annualized basis in November, as expected. The market’s rally following the news reflected investor relief that inflation met expectations and that the increase from the prior month was slight.
Those two factors may reinforce the belief that the Fed would follow through with the December rate adjustment, which it penciled in back in September. The bellwether inflation measure was the last critical data point before the Fed’s two-day meeting, scheduled to end on December 18.8
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, December 13, 2024
2Investing.com, December 13, 2024
3CNBC.com, December 10, 2024
4The Wall Street Journal, December 11, 2024
5The Wall Street Journal, December 12, 2024
6CNBC.com, December 13, 2024
7The Wall Street Journal, December 13, 2024
8The Wall Street Journal, December 11, 2024
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