What Happened Last Week

The S&P 500 Index declined 0.64 percent. The Nasdaq Composite Index gained 0.34 percent. The Dow Jones Industrial Average declined 1.82 percent.^1,2

Up and Down Week

Stocks fell broadly over the first part of the week. Leading chipmakers who produce semiconductors for artificial intelligence applications were under pressure after Chinese regulators announced an antimonopoly investigation.³

Investors breathed a sigh of relief Wednesday morning following news that consumer inflation in November was in line with expectations. Mega-cap tech stocks led the rally, with the Nasdaq closing above 20,000 for the first time. Meanwhile, the Dow fell as healthcare stocks came under pressure.⁴

Stocks remained in the trading range for the rest of the week on mild concerns about Thursday’s warmer-than-expected wholesale inflation report and a spending slowdown among lower-income consumers. The Dow registered its worst losing streak since 2020.^5,6,7

Coming Up: Fed Funds Rate Announcement

As many expected, the consumer price index ticked up to 2.7 percent on an annualized basis in November. The market’s rally following the news reflected investor relief that inflation met expectations and that the increase from the prior month was slight.

Those two factors may reinforce the belief that the Fed would follow through with the December rate adjustment, which it penciled in back in September. The bellwether inflation measure was the last critical data point before the Fed’s two-day meeting. It is widely expected that there will be a 0.25% cut.

The final fed funds rate announcement of 2024 is scheduled for Wednesday the 18th at 2:00pm est.⁸

Economic Data To Watch

Tuesday: Federal Open Market Committee (FOMC) Meeting Begins. Retail Sales. Industrial Production. Business Inventories.

Wednesday: Housing Starts and Permits. FOMC Announcement. Fed Chair Press Conference.

Thursday: Gross Domestic Product. Existing Home Sales. Weekly Jobless Claims.

Friday: Personal Income and Outlays. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; December 10, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

Upcoming Earnings Reports

Wednesday: Micron Technology, Inc. (MU)

Thursday: NIKE, Inc. (NKE), Cintas Corporation (CTAS), FedEx Corporation (FDX), Paychex Inc. (PAYX)

^{Source: Zacks, December 10, 2024. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Footnotes and Sources

^{1. The Wall Street Journal, December 13, 2024}

^{2. Investing.com, December 13, 2024}

^{3. CNBC.com, December 10, 2024}

^{4. The Wall Street Journal, December 11, 2024}

^{5. The Wall Street Journal, December 12, 2024}

^{6. CNBC.com, December 13, 2024}

^{7. The Wall Street Journal, December 13, 2024}

^{8. The Wall Street Journal, December 11, 2024}

^{Source: YCharts.com, December 14, 2024. Weekly performance is measured from Monday, December 9, to Friday, December 13. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}