Stocks rose last week as peace talks picked up while investors cheered better-than-expected economic news and Q1 corporate results.
Gerry Sparrow
151 posts
Stocks were mixed last week as investors gauged potential outcomes of the Middle East conflict amid an ongoing ceasefire.
Stocks continued to ride the hopeful sentiment of a ceasefire at the start of last week, with all three averages advancing. The S&P 500 has recouped all its losses since the start of the war.
Investors looked past comments from Fed Chair Powell that inflation expectations "appear to be well anchored beyond the short term" despite concerns over the Middle East conflict's potential inflationary effects.
Stocks ended a challenging week lower as investors' attention shifted from updates on ceasefire talks to concerns about the economic impact of a protracted conflict.
Markets got a volatile start to the week, with stocks falling and oil prices rising as commercial maritime traffic heading out of the Persian Gulf through the Strait of Hormuz remained at a virtual standstill.
Stocks fell last week amid concerns about artificial intelligence (AI) and a warmer-than-expected reading of wholesale inflation.
A stronger-than-expected jobs report initially sparked a rally midweek, but the momentum quickly faded. Stocks then came under pressure as AI disruption fears spread across several industry groups.
After the White House nominated Fed veteran Kevin Warsh as the next Fed chair, stocks opened lower Friday. A warmer-than-expected December wholesale inflation report and concerns about a government shutdown added to bearish investor sentiment as the week wrapped up
Stocks posted solid gains in an action-packed week of market-moving economic data, geopolitical news, and bullish new year sentiment. By Monday’s close, the Dow Industrials had gained enough to make the “Santa Claus Rally” a reality.
A widely anticipated Federal Reserve decision on interest rates and a rotation into non-tech areas helped push the Dow Industrials higher, while the broader market and technology stocks lagged behind.
Overall bullish holiday sentiment, positive news on a handful of AI-related megacap tech names, and continued investor optimism for the Fed to adjust rates at its next meeting powered the advances.