By: Gerry Sparrow
Stocks finished the week mixed, bookending losses around midweek gains as investors digested fresh inflation data.
The Standard & Poor’s 500 Index slipped 0.64 percent, while the Nasdaq Composite Index ticked up 0.34 percent. The Dow Jones Industrial Average dropped 1.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent.1,2
Up and 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
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
The consumer price index ticked up to 2.7 percent 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
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.
Originally posted on December 17, 2024
PHOTO CREDIT : https://www.shutterstock.com/g/Narin++Nonthamand
VIA SHUTTERSTOCK
FOOTNOTES:
1. The Wall Street Journal, December 13, 2024
2. Investing.com, December 13, 2024
3. CNBC.com, December 10, 2024
4. The Wall Street Journal, December 11, 2024
5. The Wall Street Journal, December 12, 2024
6. CNBC.com, December 13, 2024
7. The Wall Street Journal, December 13, 2024
8. The Wall Street Journal, December 11, 2024
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