Mid-Week Market Minute 12.4.24

Stocks Mostly Higher; Nonfarm Payrolls Report on Friday

Stocks were mostly higher in early trading this week as the markets look to build on what’s been an impressive run so far this year. The S&P 500 rallied nearly 1% this week, while the Russell 2000 (small cap index) retreated slightly. After lagging U.S. markets over the past several months, international developed and emerging market stocks led the way higher this week with the MSCI EM (emerging markets index) higher by about 1.8%, while the MSCI EAFE (international developed index) was higher by about 1.4% mid-week.

On the economic front, we’ve got a busy week of key labor market indicators. On Wednesday, ADP’s November private payrolls growth came in shy of forecasts, following October’s downward revision. The report showed private employment increased by 146,000 in November, missing expectations of 158,000. This comes ahead of the widely anticipated nonfarm payrolls report on Friday, where the economists are expecting the U.S. economy to have added 215,000 jobs in November. Meanwhile, the unemployment rate is expected to remain unchanged from October at 4.1%.

Elsewhere, markets will keep an eye on the ISM and S&P U.S. services PMI readings, which are expected later Wednesday, followed by durable goods orders. In addition, comments from Fed Chair Jerome Powell are expected on Wednesday afternoon as he attends a moderated discussion in New York. The Federal Reserve remains a focal point for investors as the central bank looks to strike the balance between maximum employment and price stability. Heading into the final policy-setting meeting of the year, the markets are pricing in about a 75% chance of a 25-basis-point cut on Dec. 18.

Source: GSAM, CNBC, JPMorgan, FactSet

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.