What Happened Last Week

The Dow Jones Industrial Average fell 2.25 percent, the S&P 500 Index fell 1.98 percent, and the Nasdaq Composite Index fell 1.78 percent.^1,2

No Santa Yet

Divergence marked the start of the week as megacap tech stocks rallied while the Dow Industrials fell for the eighth-straight session—its longest losing streak since 2018.³

Following its scheduled December meeting, the Fed announced it was cutting short-term rates by a quarter point, as widely expected. However, Fed Chair Jerome Powell also signaled fewer rate reductions next year. “From here, it’s a new phase and we’re going to be cautious about further cuts,” he said in his post-meeting news conference.

The rate news surprised investors, who were anticipating more dovish comments from the Fed Chair.^4,5

Markets were under pressure again early Friday as the spending bill to fund the federal government appeared to stall. But a lower-than-expected inflation update boosted the market and helped erase some of the earlier losses.^6,7

Recent History Rhymes

Despite a difficult week, stocks are on track to have their second consecutive year of double-digit returns. Year to date, through Friday’s close, the S&P 500 was ahead by about 24 percent. Aided by a strong close to the year, the S&P 500 also tacked on 24 percent in 2023.⁸

Economic Data To Watch

Monday:Consumer Confidence.

Tuesday:Durable Goods. New Home Sales.

Wednesday:Stock market closed.

Thursday:Weekly Jobless Claims. Fed Balance Sheet.

Friday:International Trade in Goods.

^{Source: Investors Business Daily - Econoday economic calendar; December 16, 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

No companies are scheduled to report results this week.

^{Source: Zacks, December 16, 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 20, 2024}

^{2. Investing.com, December 20, 2024}

^{3. CNBC.com, December 16, 2024}

^{4. CNBC.com, December 17, 2024}

^{5. The Wall Street Journal, December 18, 2024}

^{6. CNBC.com, December 19, 2024}

^{7. CNBC.com, December 20, 2024}

^{8. The Wall Street Journal, December 20, 2024}

^{Source: YCharts.com, December 21, 2024. Weekly performance is measured from Monday, December 16, to Friday, December 20. 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.}