Market Recap - Tariff Talk, Earnings News, and Economic Data Fuels Declines

It was a busy week for stock market participants. The major indices ebbed and flowed, ultimately settling lower than last Friday.

The S&P 500 slid 0.4% and the Nasdaq Composite logged a 0.5% decline.

The news cycle in the first half of the week was dominated by talk of tariffs. Participants learned last weekend that President Trump announced that the U.S. will be implementing a 25% tariff on imported goods from Canada and Mexico (but only a 10% tariff on imported Canadian energy) and a 10% tariff on imported goods from China. He also indicated to the press that tariffs for the EU will likely be implemented fairly soon.

Leaders from Canada and Mexico were able to strike a deal with the US to avoid tariffs for one month. Meanwhile, China said it will be imposing a 15% tariff on imports of coal and LNG from the U.S., and 10% tariffs on crude oil, agricultural machinery, and certain cars starting February 10. China also imposed further export restrictions on key minerals, such as tungsten, and said it will be starting an anti-monopoly investigation of Alphabet's Google.

The market interpreted China's retaliation as more postural than penal. Furthermore, the tariff talk has been viewed as more of a temporary negotiating tactic than a permanent feature.

There was also a slate of market-moving economic data to get through this week. The December JOLTS - Jobs Openings Report showed a stark drop in openings to 7.600 million versus an upwardly revised 8.156 million (from 8.098 million) in November; Services PMI readings for January out of China, Europe, and the U.S. were weaker-than-expected, fostering some growth concerns; the January Employment Situation Report featured a 0.5% increase in average hourly earnings, which may not bode well for inflation; and the preliminary February University of Michigan Consumer Sentiment survey showed an increase in year-ahead inflation expectations to 4.3% (from 3.3%).

Rate cut expectations adjusted in response to the economic data and tariff news. The fed funds futures market now sees a 52.8% probability of a rate cut by the June FOMC meeting, down from 64.6% yesterday, according to the CME FedWatch Tool.

Treasury yields also adjusted in response to the tariff news and data. The 2-yr yield settled four basis points higher at 4.28% and the 10-yr yield settled eight basis points lower at 4.49%.

The front of the curve was under pressure as the specter of higher inflation following the tariff talk and economic data will likely forestall future rate cuts by the Fed; the long end, which is more sensitive to inflation pressures, was actually a bit stronger (ironically) as participants mull the notion that demand will wane in the face of higher prices, hurting growth.

It was another big week for earnings news with results from Alphabet, which dropped 9.0%, and Amazon.com, which dropped 3.6%, headlining the calendar. Other notable names included Palantir Technologies, Qualcomm, Spotify, Dow component Merck, Estee Lauder, and PepsiCo.

Market Recap - Busy Week of Earnings, Economic Releases, and Market-moving News

The Dow Jones Industrial Average eked out a 0.3% gain this week while the S&P 500 declined 1.0%, the Nasdaq Composite fell 1.6%, and the Russell 2000 logged a 0.9% loss.

The week started on a sharply lower note following weekend focus on a Chinese AI platform DeepSeek, which garnered popularity for being less resource-intensive than alternatives like ChatGPT. This called into question the competitiveness of companies that are powering the AI sector and it could alter capital spending plans if the DeepSeek model proves to be as good as advertised. 

NVIDIA dropped 17% on Monday, logging its largest single-day loss in market capitalization ever. Shares were 15.8% lower than last Friday by the end of the week. 

It was a busy week that featured earnings news from about 40% of the S&P 500 in terms of market capitalization, a decision by the FOMC, and influential economic releases.

Apple, which closed 5.9% higher this week, Microsoft, which declined 6.5% this week, Meta Platforms, which jumped 6.4%, and Tesla, which declined 0.5% this week, were some of the top names that reported quarterly results. IBM (+13.8%), Starbucks (+9.0%), Boeing (+0.3%), General Motors (-8.3%), and Lockheed Martin (-6.8%) were also among the headliners in terms of earnings news.  

On Wednesday, the Federal Open Market Committee (FOMC) voted unanimously to leave the target range for the fed funds rate unchanged at 4.25-4.50%. That was in-line with the decision widely expected by the fed funds futures market.

It was noted in the directive that "Inflation remains somewhat elevated." The last directive in December said the same. What was missing this time was the added statement in the December directive that, "Inflation has made progress toward the Committee's 2 percent objective..."

Also noted in the January directive was that, "...labor market conditions remain solid." This messaging pointed to the Fed remaining inclined to wait and see what messages avail themselves in future data. 

Fed Chair Powell communicated that stance more than once during his press conference, noting right off the bat that, "With our policy stance significantly less restrictive than it had been, and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance."

There was some volatility in stocks and bonds in immediate response to these developments, but markets ultimately settled the day little changed from levels seen ahead of the 2:00 ET policy announcement. This was an indication that participants didn't see anything truly surprising in Wednesday's decision or in the Fed Chair's comments.

This week's economic lineup featured an encouragingly low level of initial jobless claims (207,000) for the week ending January 25 and a refreshingly strong 4.2% growth rate for personal spending in the fourth quarter, which was the best since Q1 2023.

Also, the core-PCE Price Index (the Fed's preferred inflation gauge) was up 2.8% year-over-year for the third month in a row following a 0.2% month-over-month increase.

Stocks sold off late Friday after the White House confirmed that 25% tariffs for Canada and Mexico, and a 10% tariff for China, will begin Saturday (February 1). The basis for the tariff actions were tied to immigration, trade deficit, and fentanyl issues.

It wasn't exactly breaking news as there were similar reports out on Thursday, but the added uncertainty heading into the weekend was enough to drive selling interest and quell any buy-the-dip action. There were subsequent reports hinting at behind-the-scenes negotiations that may lead to the tariff actions being called off or at least watered down, but that didn't help stocks much.

Treasuries had a volatile week, ultimately settling with gains. The 10-yr yield was six basis points lower than last Friday at 4.57% and the 2-yr yield was three basis points lower than last Friday at 4.24%. 

• Dow Jones Industrial Average: +0.3% for the week / +4.7% YTD

• S&P Midcap 400: -1.2% for the week / +3.8% YTD

• S&P 500: -1.0% for the week / +2.7% YTD

• Russell 2000: -0.9% for the week / +2.6% YTD

• Nasdaq Composite: -1.6% for the week / +1.6% YTD

Market Recap - Politics and Earnings Drive New Record High for the S&P 500

It was an historic week for the country and the stock market.

Donald J. Trump was inaugurated Monday as the 47th President of the Unites States of America. His inauguration happened to line up with Martin Luther King, Jr. Day, which was a market holiday.

When markets reopened on Tuesday, they wasted little time picking up where they left off in terms of last week's bullish bias. They did so digesting President Trump's declaration of a national energy emergency and a barrage of executive orders that, strikingly, did not include any implementation of tariffs for China. There was a suggestion by the president, though, that he is thinking of 25% tariffs for Canada and Mexico starting February 1.

It was the lack of a hard-hitting tariff on China, however, that spurred a relief trade that boosted the broader market along with the news of a $500 billion AI infrastructure initiative, dubbed Stargate, that involved OpenAI, Softbank, and Oracle (ORCL).

The positive price action continued Wednesday after Netflix (NFLX) wowed the street with its earnings report and paid subscriber growth. Dow components Procter & Gamble (PG) and Travelers (TRV) also provided earnings‐related leadership. The price action pushed the S&P 500 to a new all-time high that was ultimately followed by a record closing high on Thursday.

The latter was driven by blue chip stocks and coincided with President Trump's virtual address to the World Economic Forum in Davos in which he said he will be pressuring OPEC and Saudi Arabia to lower oil prices, that he expects NATO countries to spend 5% of their GDP on defense, and that foreign companies that manufacture their products in the U.S. will enjoy a lower tax rate while those that don't face the prospect of tariffs.

The president also added that he will demand that interest rates come down immediately. That was interpreted as a tacit shot at Fed Chair Powell, who will be leading the FOMC meeting January 28-29. Bloomberg noted that the president later told reporters that he believes he knows more about interest rates than Fed Chair Powell, that he will speak to him "at the right time," and that he believes the Fed will listen to him.

The FOMC meeting will be a focal point in a big week next week that will include earnings reports from Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), Amazon.com (AMZN), and Tesla (TSLA), as well as the Advance Q4 GDP Report and the Fed's preferred inflation gauge in the form of the PCE Price Index.

The FOMC meeting is not expected to produce a rate cut, but with President Trump's statement on interest rates, the intrigue surrounding the press conference went way up.

In terms of the week we're leaving behind, it was a good week for the broader market. The major indices increased between 1.1% and 2.2%. Ten of the 11 S&P 500 sectors registered gains ranging from 0.8% (consumer discretionary) to 4.0% (communication services). The missing link was the energy sector (-2.9%), which traded down along with oil prices on some worries that a "drill, baby, drill" approach could lead to a supply-demand imbalance.

The Treasury market maintained a relatively calm disposition, which also helped support stocks. The 2-year note yield was unchanged for the week at 4.27% while the 10-year note yield rose just two basis points to 4.63%. The U.S. Dollar Index was down 1.7% to 107.47.

• S&P Midcap 400: +1.1% for the week / +5.0% YTD

• Dow Jones Industrial Average: +2.2% for the week / +4.4% YTD

• S&P 500: +1.7% for the week / +3.7% YTD

• Russell 2000: +1.4% for the week / +3.5% YTD

• Nasdaq Composite: +1.7% for the week / +3.3% YTD

Market Recap - Inflation Data, Bank Earnings Spell Relief

IT was a good week for the stock market.

In fact, it was the best week for the S&P 500 since the election, which is notable given that Donald J. Trump will be inaugurated Monday as the 47th President of the United States of America.

This week, however, wasn't so much about politics as it was about other factors, namely the market's perception of inflation trends and its excitement over the earnings results from many of the nation's largest financial institutions. Politics did play a part though.

There was an exhale on the news that Israel and Hamas reached a ceasefire agreement; and there was some speculative energy related to the impending arrival of a new administration to the White House that is pushing deregulation and lower tax rates.

That push was reiterated by Treasury Secretary nominee Scott Bessent in his confirmation hearing on Thursday along with the view that the U.S. needs to get its fiscal house in order. On a related note, the Congressional Budget Office (CBO) issued a report on Friday in which it projected a $1.9 trillion budget deficit for fiscal 2025.

The stock market did not wallow in the CBO's report. Rather, it was still basking in the glow of the December PPI and CPI reports from earlier in the week that were better than feared, helping to temper some of the market's inflation angst. That applied to the Treasury market as well, which saw yields drop sharply in the wake of the CPI report, which featured a dip in the year-over-year rate for core-CPI to 3.2% from 3.3%.

The 2-yr note yield fell 13 basis points this week to 4.27% while the 10-yr note yield dropped 17 basis points to 4.61%.

The lower Treasury yields ignited a stock market rally that saw the Dow, Nasdaq, and S&P 500 log their biggest daily gains on Wednesday since the day after the election. The stock market was also enjoying a slate of earnings news that day from the likes of JPMorgan Chase (JPM), Goldman Sachs (GS), BlackRock (BLK), Wells Fargo (WFC), and Citigroup (C) that was much better than expected.

Those reports fueled a 6.1% gain for the financial sector in a week filled with big returns. The energy sector was also up 6.1%; the materials sector jumped 6.0%; the industrials sector increased 4.8%; the utilities sector added 4.3%; and the consumer discretionary sector rose 4.0%, making it a week that predominately had a cyclical charge to it.

It was also a week that saw value outperform growth, small caps outperform large caps (and mega caps), and the equal‐weighted S&P 500 (+3.9%) outperform the market cap-weighted S&P 500 (+2.9%), which on Friday reclaimed a posture above its 50-day moving average.

• S&P Midcap 400: +4.5% for the week / +3.8% YTD

• Russell 2000: +4.0% for the week / +2.1% YTD

• S&P 500: +2.9% for the week / +2.0% YTD

• Dow Jones Industrial Average: +3.7% for the week / +2.2% YTD

• Nasdaq Composite: +2.4% for the week / +1.7% YTD

Market Recap - Stocks Waver Amid Rising Rates

The stock market closed with losses at the index level.

Rising market rates were a big driving factor in this week's action, reflecting worries about stick inflation and that the Federal Reserve may maintain higher interest rates for an extended period.

The 10-yr yield surged 18 basis points this week to 4.78% and the 2-yr yield settled 12 basis points higher than last Friday to 4.40%. This price action was in response to this week's economic releases.

The reports includes a stronger-than-expected ISM Services PMI reading for December and a November JOLTS - Job Openings Report that showed a noticeable increase in job openings. The added wrinkle in the ISM Services PMI is that it also featured a notable pickup in the Prices Index (to 64.4% from 58.2%), which topped the 60.0% level for the first time since January 2024.

The data also included a below-consensus ADP Employment Change report for December (122,000; Briefing.com consensus 131,000), and an unexpected drop in weekly Initial Claims (201,000; Briefing.com consensus 218,000; prior 211,000).

The December employment report featured a 256,000 increase in nonfarm payrolls and a dip in the unemployment rate to 4.1% from 4.2%. There was also a notable jump in year-ahead and long-run inflation expectations in the preliminary January University of Michigan index of Consumer Sentiment.

Market participants also received the FOMC Minutes for the December 17-18 meeting, which echoed Fed Chair Powell's remarks in his press conference after the meeting. The minutes conveyed a belief that the Fed should hold off on another rate cut until it has more confidence in inflation returning to its 2% target and/or more concern about the labor market deteriorating in a more pronounced manner.

Many stocks participated in a broad retreat this week. The market-cap weighted S&P 500 dropped 1.9% and the equal-weighted S&P 500 dropped 1.7%. The Nasdaq Composite fell 2.3% and the Dow Jones Industrial Average closed 1.9% lower than last Friday. The S&P 500 briefly traded above its 50-day moving average this week before dropping back below that key level.

Only three S&P 500 sectors closed higher and eight closed lower than last Friday. The health care (+0.5%), energy (+0.9%), and materials (+0.1%) sectors closed higher while the rate-sensitive real estate sector logged the largest decline, dropping 4.1% from last week.

• S&P Midcap 400: -1.7% for the week / -0.7% YTD

• Nasdaq Composite: -2.3% for the week / -0.8% YTD

• S&P 500: -1.9% for the week / -0.9% YTD

• Dow Jones Industrial Average: -1.9% for the week / -1.4% YTD

• Russell 2000: -3.5% for the week / -1.8% YTD

Market Recap - Mixed Week Over New Year's Holiday

The stock market had a mixed week, which included the final sessions in 2024 and final sessions of the Santa Claus Rally period.

The major indices lost steam at the end of the year after registering huge gains, but some rebound action kicked in at the end of the week. 

Small stocks outperformed their larger peers this week, leading the Russell 2000 to settle 1.1% higher. The S&P 500 and Nasdaq Composite each declined 0.5% for the week. The S&P surged 23.3% in 2024 and the Nasdaq Composite closed 28.6% higher for the year. 

This week's price action left the S&P 500 lower over the Santa Claus Rally period, which has been good for an average gain of 1.3% for the S&P 500 since 1950, according to The Stock Traders Almanac. It has been observed that significant downturns have occurred (but not always) in years when Santa didn't show. To that end, bear in mind that Santa didn't show last year and the S&P 500 went on to log a 23.3% price gain for 2024.

The S&P 500 also closed below its 50-day moving average, which pivoted from support to resistance on Monday. 

Only three S&P 500 sectors closed higher this week -- energy (+3.2%), real estate (+0.6%), and health care (+0.01%) -- while the materials (-2.1%), consumer discretionary (-1.5%), and consumer staples (-1.4%) sectors logged the largest declines. 

Volume was relatively light due to holiday-related closures this week. Several foreign markets were closed on Tuesday (or closed early) and remained closed Wednesday for the New Year's holiday. The U.S. markets were open for a full day on Tuesday and closed on Wednesday.

• Russell 2000: +1.1% for the week / +1.7% YTD

• Nasdaq Composite: -0.5% for the week / +1.6% YTD

• S&P 500: -0.5% for the week / +1.0% YTD

• S&P Midcap 400: +0.4% for the week / +1.0% YTD

• Dow Jones Industrial Average: -0.6% for the week / +0.4% YTD

Market Recap - Slim Gains Over a Short Week

The stock market logged some gains on this holiday-shortened week.

The equity market closed at 1:00 p.m. ET on Tuesday and remained closed on Wednesday for Christmas Day.

The "Santa Claus rally" period (i.e. the last five trading days of the year and the first two trading days of the new year) began on Tuesday and doesn't always lead to gains in the stock market, but usually features a positive skew. The S&P 500 closed 0.7% higher on the week, the Dow Jones Industrial Average settled 0.4% higher than last Friday, and the Nasdaq Composite was 0.8% higher this week.

There wasn't a lot of market‐moving news and volume was thin ahead of another abbreviated week. The equal‐weighted S&P 500 settled fractionally higher than last week.

Gains in some mega caps and chipmakers provided some support to the broader equity market. NVIDIA (NVDA) closed 1.7% higher, Tesla (TSLA) gained 2.5%, and Broadcom (AVGO) surged 9.5%.

Qualcomm (QCOM) was another winner from the semiconductor space after jurors found that the chip company didn't violate terms of its agreement covering Arm Holding's (ARM) designs. Shares settled 2.9% higher than last Friday.

Eli Lilly (LLY) was another story stock, closing 2.0% higher for the week, after the FDA approved Zepbound (tirzepatide) as the first and only prescription medicine for moderate-to-severe obstructive sleep apnea in adults with obesity.

The economic calendar was light, featuring a better‐than‐expected weekly jobless claims report. Weekly initial jobless claims for the week ending December 21 checked in at a lower than expected 219,000 (Briefing.com consensus 232,000) while continuing jobless claims for the week ending December 14 hit their highest (1.910 million) since November 13, 2021.

• Nasdaq Composite: +0.8% for the week / +31.4% YTD

• S&P 500: +0.7% for the week / +25.2% YTD

• Dow Jones Industrial Average: +0.4% for the week / +14.1% YTD

• S&P Midcap 400: +0.5% for the week / +12.8% YTD

• Russell 2000: +0.1% for the week / +10.7% YTD

Market Recap - Inflation Data, Earnings News, and Rising Rates Drive Selling Interest

The Nasdaq Composite closed above 20,000 for the first time this week, settling 0.3% higher than last week.

The S&P 500 and Dow Jones Industrial Average dropped 0.6% and 1.8%, respectively, this week. The Russell 2000 underperformed its peers, losing 2.6%.

There were festering valuation concerns in play that also mixed with chatter of the market being overbought on a short-term basis and due for some consolidation. Market participants used rising market rates as an excuse to engage in profit-taking activity.

The 10-year yield jumped 25 basis points to 4.40% and the 2-year yield jumped 14 basis points to 4.24%. This price action followed disappointing inflation readings and data indicating some softening in the labor market.

Wednesday's release of the November Consumer Price Index (CPI) report met expectations and reinforced the market's anticipation of an upcoming rate cut. Total CPI moved higher on a year-over-year basis to 2.7% from 2.6% and core CPI was at 3.3%, which is still above the Fed's 2% inflation target.

Thursday's release of the November Producer Price Index (PPI) report showed rising inflation at the producer level, which doesn't mix with the market's view of ongoing rate cuts. The index for final demand was up 3.0% year-over-year versus 2.6% in October. Excluding food and energy, the index for final demand was up 3.4% year-over-year (3.45% unrounded versus 3.37% in October).

Market participants also received weekly initial jobless claims, which increased to 242,000 from 225,000 and continuing claims, which increased to 1.886 million from 1.871 million.

Expectations for a 25-basis points rate cut at the FOMC meeting next week increased in response to the data. The fed funds futures market now sees a 95.3% probability of a 25 basis points cut next week, up from 86.0% one week ago, according to the CME FedWatch tool.

In corporate news, Oracle (ORCL) declined 9.6% this week after a disappointing fiscal Q2 earnings report, missing the consensus EPS estimate compiled by FactSet, and issuing lower-than-expected guidance for fiscal Q3. Adobe's (ADBE) FY25 guidance disappointed investors while shares of Broadcom (AVGO) rallied 25.2% this week after solid results and pleasing guidance.

In other news, the ECB's cut its key policy rates by 25 basis points, as expected.

• Nasdaq Composite: +0.3% for the week / +32.7% YTD

• S&P 500: -0.6% for the week / +26.9% YTD

• S&P Midcap 400: -1.6% for the week / +17.8% YTD

• Russell 2000: -2.6% for the week / +15.8% YTD

• Dow Jones Industrial Average: -1.8% for the week / +16.3% YTD

Market Recap- A Big Week For The Mega-Cap Stocks

It was a big week for the stock market.

We mean that figuratively more so than literally given that the mega-cap stocks dominated this week's trading action. Their influence was plain to see in the outperformance of the market cap-weighted S&P 500 (+1.0%) versus the equal‐weighted S&P 500 (-1.3%).

Led by the likes of Apple (AAPL), NVIDIA (NVDA), Microsoft (MSFT), Tesla (TSLA), Amazon.com (AMZN), and the usual cohort, the Vanguard Mega-Cap Growth ETF (MGK) surged 3.7% this week. It drew some energy from an AI trade that was ignited by Salesforce's (CRM) encouraging outlook for its Agentforce AI system for enterprises.

Separately, it was a momentous week for Bitcoin, which topped $100,000 for the first time ever on Thursday. The stock market took notice of that move (how could it not?) but, notably, it did not see an animal spirits trade in its wake. Stocks languished on Thursday, albeit after a run that saw the S&P 500 score 11 gains in 12 sessions and set several new record highs in the process.

The latter point notwithstanding, this was not a week accented with broad-based buying interest. The broader market took a backseat to the mega-cap trade and gave in to some consolidation activity.

There were only three S&P 500 sectors that finished higher this week. The upside for the market is that they carried a lot of weight and registered big gains. The consumer discretionary sector (+5.9%) led the charge followed by communication services (+4.1%), and information technology (+3.4%).

The other eight sectors had a tough go of it. The consumer staples sector, which declined 0.8%, lost the least amount of ground. Otherwise, losses ranged from 1.8% (financials) to 4.6% (energy).

Similarly, while the market cap-weighted S&P 500 gained 1.0% (rounding up), the Russell 2000 declined 1.1% and the S&P Midcap 400 Index fell 1.0%.

On a brighter note, the S&P 500 and Nasdaq Composite both finished the week at record closing highs, holding their bullish disposition after a November employment report that was neither too hot nor too cold. In effect, it was just right for the soft landing/no landing view that left the market hopeful about continued earnings growth and another rate cut at the December 17-18 FOMC meeting.

Treasuries also had another winning week. The 2-year note yield fell six basis points this week to 4.10% while the 10-year note yield dropped three basis points to 4.15%.

• Nasdaq Composite: +3.3% for the week / +32.3% YTD

• S&P 500: +1.0% for the week / +27.7% YTD

• S&P Midcap 400: ‐1.0% for the week / +19.8% YTD

• Russell 2000: ‐1.1% for the week / +18.8% YTD

• Dow Jones Industrial Average: ‐0.6% for the week / +18.4% YTD

Market Recap - Short Week, Solid Gains

The major indices closed higher across the board on this holiday-shortened week.

Markets were closed on Thursday for Thanksgiving and closed early on Friday (1:00 p.m. ET for the NYSE and 2:00 p.m. ET for the Treasury market).

The S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 all closed more than 1.0% higher compared to last week.

Lower Treasury yields, which followed the news of Scott Bessent being nominated for Treasury Secretary, were a breath of fresh air for a stock market contending with stretched valuations.

Mr. Trump's pick to lead the Department of the Treasury is perceived as "market-friendly" due to his background as a hedge fund manager. According to The Wall Street Journal, Bessent has expressed his priority to advance the Trump administration tax-cut proposals.

The bond market rallied due to optimism that Mr. Bessent, while focusing on tax cuts, will also focus on reducing the national debt, cutting the budget deficit to 3% of GDP, and advocating for a more gradual approach to tariffs in order to prevent runaway inflation.

The 10-yr note yield, which flirted with 4.50% last week, dipped below 4.20% on Friday. The 2-yr note yield also dipped below 4.20% after pushing 4.40% last week.

Market participants brushed off fears about potential reaccelerating inflation that stemmed from President‐elect Trump's announcement that he plans to impose tariffs—an additional 10% on imports from China and 25% on goods from Mexico and Canada—on his first day in office, contingent upon halting migrant flows and the trafficking of fentanyl into the U.S.

Also, PCE price inflation that was a bit sticky in October above the Fed's 2.0% target and real disposable personal income increased 0.4%. Other data included weekly initial jobless claims that were encouraging with a low reading of just 213,000, and pending home sales jumped 2.0% in October.

There was also a sharp 17.3% month-over-month decline in new home sales for October and a notable drop in the November Consumer Confidence Report, which showed a 12-month inflation expectations reading of 4.9% — the lowest since March 2020 (though still elevated, it signals a trend in the right direction).

• Nasdaq Composite: +1.1% for the week / +28.0% YTD

• S&P 500: +1.1% for the week / +26.5% YTD

• S&P Midcap 400: +0.7% for the week / +21.0% YTD

• Russell 2000: +1.2% for the week / +20.1% YTD

• Dow Jones Industrial Average: +1.4% for the week / +19.2% YTD