This week’s calendar break offers an opportunity for markets to absorb these factors before entering the new year.
Wall Street presents mixed trend Monday, as investors consider the path of interest rates next year after the Federal Reserve hinted they will stay higher for longer.
The S&P 500 falls 0.2%, while the Nasdaqdominated by technology (^IXIC), erases early gains and remains practically flat. The Dow Jones Industrial Average (^DJI) falls more than 250 points, or 0.5%.
Among the notable actions of the day is Nvidia, which climbed 1.4%, while Apple and Wallmart fell, the first -0.5% and the other almost 4%. As for the sectors that drive the market, the Healthcare sector only increased by 0.7% and the technology sector by 0.1%.
Wall Street comes off an optimistic Friday, but from a negative and volatile weekwith the three major indexes rising more than 1% on Friday, but falling about 2% for the week. The Federal Reserve has played the role of “the Grinch,” signaling it will reduce its pace of cuts next year, sending stocks into one of the worst days of the year on Wednesday.
The data analyzed by the Fed
However, on Friday, the Fed’s preferred measure of inflation, the Personal Consumption Expenditure Index, showed a further slowdown in inflation, albeit with some persistence. Still, the lone dissenter in the Fed’s decision to cut rates last week said she voted against the cut because “there is still work to do on inflation.”
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Federal Reserve
For now, according to the CME FedWatch tool, investors are betting that the Fed will keep rates steady next month. For the next meeting in March, the bets are 50-50 between a cut and a pause.
However, this week’s light calendar will provide a respite and an opportunity for Wall Street to reflect and prepare for 2025. Markets will close at 1 pm ET on Tuesday, followed by the Christmas holiday on Wednesday.
Source: Ambito
