U.S. Stocks Experience Mixed Week Amid Inflation Data and Fed Signals
U.S. stocks surged on Friday, thanks to cooler-than-expected inflation figures and reassuring comments from Federal Reserve officials. Despite this, the major indexes ended the week lower. The Personal Consumption Expenditure (PCE) index reported a 2.4% annual increase in November, falling short of the 2.5% estimate, which relieved some inflation worries. The Dow Jones Industrial Average increased by 1.18%, the S&P 500 rose by 1.09%, and the Nasdaq Composite climbed by 1.03%, with the real estate sector showing the strongest performance.
- Dow rose 1.18%, S&P 500 gained 1.09%, Nasdaq climbed 1.03% on Friday.
- PCE inflation rose 2.4% annually in November, slightly below expectations.
- Major indexes fell for the week, with the S&P 500 down 1.99%.
Market Overview
- Real estate led Friday’s gains, advancing 1.8% as Treasury yields declined.
- Markets anticipate the Fed’s first rate cut in March 2025, followed by another cut in October.
- Congress is racing to prevent a government shutdown before a midnight deadline.
Key Points
- Investors are focused on fiscal policy and tariff decisions from Trump’s incoming administration.
- Clear signs of heightened market activity as triple witching boosts trading volumes.
- Small-cap stocks (RUT), buoyed by rate-cut optimism, may continue to grow in 2025.
Looking Ahead
The recent rally highlights the market’s sensitivity to inflation data and the Federal Reserve’s statements. While declining yields helped real estate and small caps, the overall weekly losses point to ongoing worries about fiscal and monetary uncertainty. As the year wraps up, traders will pay close attention to fiscal negotiations and inflation trends, as these factors will influence market behavior in 2025. The effectiveness of Congress in averting a shutdown and the Fed’s measured stance on rate changes will shape investor sentiment moving forward.
This article was originally published on Quiver News; read the full story.
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