Last week was a short but lively one for investors, with stock markets posting solid gains despite the American holiday pause. As we head into the final stretch of the year, there’s a sense of cautious optimism in the air. Investors took in fresh economic data, dissected comments on potential trade policy shifts, and reacted to a few key Q3 earnings reports, particularly from major technology players.
Here’s how things shook out south of the border:
- The S&P 500 Index gained 1.06%, continuing its upward trajectory.
- The Nasdaq Composite Index, driven by tech, advanced 1.13%.
- The Dow Jones Industrial Average rose an impressive 1.39%.
- International markets also joined the rally, with the MSCI EAFE Index (tracking developed markets) up 2.02%.
Closer to Home – The Canadian Stock Market
Back in Canada, the S&P/TSX Composite Index followed suit, closing the week with gains of 1.21%. Energy stocks continued to benefit from stabilizing oil prices, while financials and materials played supporting roles. Meanwhile, fresh GDP data showed resilience in the Canadian economy, which provided a boost to investor confidence.
As we navigate this dynamic market environment, it's always a good time to revisit your investment strategy and ensure it aligns with your long-term goals. Remember, staying informed and diversified is key to weathering any market surprises.
Looking ahead, it will be interesting to see how December unfolds as investors weigh holiday retail sales, year-end tax planning, and potential central bank decisions.
Rally Extends
The week started with a bang as stocks rallied broadly, buoyed by optimism around the newly announced nominee for Secretary of the Treasury. This news seemed to energize markets, and small-cap stocks stole the show with the Russell 2000 Index soaring to a record high. Adding to the positive momentum was a rise in consumer confidence in November, a reminder that resilience and optimism are alive and well.
As the week progressed, markets took a bit of a breather. Pre-Thanksgiving trading saw investors sifting through a mix of economic data, and the tech sector faced some headwinds after lackluster Q3 updates from two computer hardware heavyweights. But even with this pause, there was still plenty of room for growth.
By Friday, semiconductor stocks were back in the driver’s seat, leading a strong rally to cap off the week. The Dow made history, breaking through the 45,000 mark for the first time, while the S&P 500 hit a fresh record high. Both indices wrapped up their best month of 2024, a milestone that signals a positive close to the year.
Source: YCharts.com, November 30, 2024. Weekly performance is measured from Friday, November 22, to Friday, November 29. 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.
Tariff Talk
The markets have been on a tear lately, fueled by optimism around potential policy changes from the incoming administration. Investors seem particularly excited about the prospects of less regulation and lower corporate taxes—two key factors that could boost corporate earnings and economic growth.
But it’s not all smooth sailing. One area raising eyebrows is the economic impact of proposed tariffs. It’s a classic case of “wait and see.” Some experts think the markets have already priced in any fallout from these tariffs, suggesting that the worst may already be behind us. Others, however, believe the newly appointed Treasury Secretary could play a pivotal role in softening the tariff talk and striking a more balanced approach.
It’s clear that policy changes will be a big driver of market sentiment in the coming months. For now, the optimism is winning, but it’s a good reminder to stay informed and flexible as the new administration settles in.
This Week: Key Economic Data
Monday: ISM Manufacturing Index. Construction Spending. Fed Official John Williams speaks.
Tuesday: Motor Vehicle Sales. Fed Official Austan Goolsbee speaks.
Wednesday: ADP Employment Report. Fed Official Alberto Musalem speaks. Factory Orders. EIA Petroleum Status Report.
Thursday: Jobless Claims. International Trade in Goods and Services. Fed Official Thomas Barkin speaks. Fed Balance Sheet.
Friday: Employment Situation. Consumer Sentiment. Fed Officials Mary Daly, Beth Hammack and Austan Goolsbee speak.
Source: Investors Business Daily - Econoday economic calendar; November 29, 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
Tuesday: Salesforce Inc. (CRM), Marvell Technology, Inc. (MRVL)
Wednesday: Synopsys, Inc. (SNPS)
Thursday: The Kroger Co. (KR)
Source: Zacks, November 29, 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.
“Life is like a buffet—load up on the good stuff, try something new, and don't forget to leave room for dessert!”
– Unknown
What has one eye and yet can’t see?
Last week’s riddle: What comes once in a minute, twice in a moment, but never in a thousand years?
Answer: The letter “M”.
Joanne's husband's Lego Winter Village. December is here!
Footnotes and Sources
- The Wall Street Journal, November 29, 2024
- Investing.com, November 29, 2024
- The Wall Street Journal, November 25, 2024
- CNBC.com, November 26, 2024
- The Wall Street Journal, November 27, 2024
- The Wall Street Journal, November 29, 2024
- CNBC.com, November 26, 2024
- IRS.gov, October 23, 2023
- Organizing Moms, July 24, 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.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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Please consult your financial professional for additional information.