Global markets delivered a mixed bag last week, with investors navigating through fresh inflation data:
- The S&P 500 Index slipped by 0.64%, reflecting cautious sentiment.
- The Nasdaq Composite Index managed a modest 0.34% gain, supported by growth stocks.
- The Dow Jones Industrial Average took a hit, dropping 1.82%.
- International markets weren’t spared either, with the MSCI EAFE Index (tracking developed overseas markets) falling 1.48%.
Closer to home in Canada, our markets mirrored the global uncertainty. The S&P/TSX Composite Index experienced fluctuations throughout the week, closing down slightly, largely due to energy sector declines and mixed earnings reports.
Up and Down Week
It was an eventful week in the markets, with ups and downs keeping investors on their toes.
The week started off on a rocky note as stocks broadly declined. Leading chipmakers—especially those at the forefront of AI technology—came under pressure after Chinese regulators announced an antimonopoly investigation. This news rippled across markets, shaking investor confidence early on.
By midweek, however, there was a collective sigh of relief. Inflation data for November came in right in line with expectations, which provided a much-needed boost to market sentiment. Mega-cap tech stocks surged, helping the Nasdaq hit a milestone and close above 20,000 for the first time. But it wasn’t all smooth sailing—healthcare stocks dragged down the Dow, which posted losses for the day.
The rest of the week saw markets settle into a trading range. Investors grappled with mixed signals, including warmer-than-expected wholesale inflation data on Thursday and reports of spending slowdowns among lower-income consumers. While these developments didn’t cause a full-blown sell-off, they contributed to the Dow’s worst losing streak since 2020.
It’s weeks like this that remind us how dynamic and interconnected global markets are—and how important it is to stay the course when planning for the long term.
Source: YCharts.com, December 14, 2024. Weekly performance is measured from Monday, December 9, to Friday, December 13. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Final Fed Meeting of 2024
As we near the end of 2024, all eyes are on the Federal Reserve’s final meeting of the year, set to wrap up on December 18.
The latest consumer price index (CPI) report showed inflation ticking up to 2.7% on an annualized basis in November—exactly what economists were predicting. For markets, this was a relief. The slight increase from the previous month was small enough to keep hopes alive that inflation is still under control.
This data point likely strengthens expectations that the Fed will follow through with the interest rate adjustment it hinted at back in September. With this CPI report as the last major piece of the puzzle before the Fed's two-day meeting, it feels like investors have a clearer picture of where things might be headed.
This Week: Key Economic Data
Tuesday: Federal Open Market Committee (FOMC) Meeting Begins. Retail Sales. Industrial Production. Business Inventories.
Wednesday: Housing Starts and Permits. FOMC Announcement. Fed Chair Press Conference.
Thursday: Gross Domestic Product. Existing Home Sales. Weekly Jobless Claims.
Friday: Personal Income and Outlays. Consumer Sentiment.
Source: Investors Business Daily - Econoday economic calendar; December 10, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Wednesday: Micron Technology, Inc. (MU)
Thursday: NIKE, Inc. (NKE), Cintas Corporation (CTAS), FedEx Corporation (FDX), Paychex Inc. (PAYX)
Source: Zacks, December 10, 2024. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
“Who are wise in love, love most, say least.”
– Alfred, Lord Tennyson
It is in seconds, seasons, centuries, and minutes, but you won’t find it in years, decades, or days. What is it?
Last week’s riddle: I have a bank, yet no cash. I can run, but can’t walk. I have a bed but never sleep. I have a mouth, but ingest no meals. What am I?
Answer: A river.
Our view for Christmas 2023. The 12 Apostles in Australia.
Footnotes and Sources
- The Wall Street Journal, December 13, 2024
- Investing.com, December 13, 2024
- CNBC.com, December 10, 2024
- The Wall Street Journal, December 11, 2024
- The Wall Street Journal, December 12, 2024
- CNBC.com, December 13, 2024
- The Wall Street Journal, December 13, 2024
- The Wall Street Journal, December 11, 2024
- 9.. IRS.gov, August 1, 2024
- Healthline, August 1, 2024
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
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