The Federal Reserve cut interest rates by 0.25% last week, with nine out of 12 voting members in favor. The split vote was influenced by a lack of economic data due to the 43-day government shutdown, and the dissenting members had differing views on whether rates should remain steady or be cut by 0.5%. This week, delayed reports, including U.S. employment data, will be released.
As of November, the U.S. economy added 64,000 jobs, bringing the unemployment rate to 4.6%. Following these announcements, Fed Chair Jerome Powell expressed skepticism about labor market strength, noting that the economy has created nearly zero jobs since April and has lost approximately 750,000 jobs year-over-year.
Looking ahead, the S&P 500 shows strong signs, including the best revenue growth in three years and significant earnings growth, with analyst expectations rising for the upcoming quarter. The market typically sees a Santa Claus rally around the Christmas holiday, which occurs about 80% of the time, suggesting a positive outlook for investors.
