Mid-Week Market Minute 11.27.24

New Highs for S&P 500, Dow Jones Industrial Average

Stocks were higher in early trading this week as both the S&P 500 and Dow Jones Industrial Average recorded fresh new all-time highs1. Markets will be closed on Thursday for Thanksgiving and will close early on Friday. Heading into Thanksgiving, the S&P 500 is now up more than 27% year-to-date2. In bonds, interest rates moved notably lower this week with the yield on the 10-year Treasury note falling roughly 15 basis points, translating into positive returns for bond investors.

Over the weekend, markets welcomed president-elect Trump’s pick for Treasury Secretary, hedge fund manager Scott Bessent2. Bessent is generally seen as positive for the economy, tough on government spending, and balanced on tariffs. Thus far, markets have largely looked past new tariff threats president-elect Trump announced earlier this week. Elsewhere, the Federal Reserve released minutes from its November meeting on Tuesday, where officials said they anticipate more interest-rate cuts on the horizon but noted the pace of cuts would likely be gradual. 

Key inflation data was released Wednesday, with annualized headline and core PCE prices coming in as expected at 2.3% and 2.8%, respectively. The PCE report is closely watched leading up to the Fed’s final meeting of the year on Dec. 18, where the futures markets are expecting about a 66% probability4 of an additional 25-basis-point rate cut before year-end.

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results.

1-https://www.msn.com/en-us/money/markets/dow-jumps-400-points-to-new-record-close-russell-2000-hits-all-time-high-as-investors-cheer-trumps-treasury-pick/ar-AA1uJUGt?ocid=BingNewsSerp

2-S&P 500 Total Returns by Year Since 1926

3-https://www.newsweek.com/trump-scott-bessent-treasury-nomination-markets-react-1991121

4-Traders price in 66% probability of December rate cut by Fed - MarketWatch