Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 1.9%, the S&P 500 was down 1.9%, and the NASDAQ fell 2.7%. Foreign stocks (MSCI EAFE) were also down for the week, falling 3.4%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.06%. (Data source: Wall Street Journal)
Tech Leads Markets Lower
November has been a down month for equities, and tech stocks have led the way lower. Markets have had a rather smooth ride higher since the April lows, but we are seeing some increased volatility of late. The AI winners have been struggling this month as some worry that AI investment has scared investors. Nvidia is down 14% from its high earlier this month, but it’s important to remember these stocks have had a huge run higher in the past few years. For example, Nvidia is up over 1,250% the past 5 years.
Fed Outlook
Chances of a December cut were on the decline last week but have since gone back up to 80%. This was one reason for the slight pullback, as markets had begun to not be sold on a December cut. The Fed meeting takes place 2 weeks from Wednesday, but it will come quickly with the Thanksgiving holiday this week and markets being closed. The one point of clarity the market will have is more economic data, with the government being reopened. This will allow the Fed to have plenty of data points to make its decision.
Walmart Stock Rises 6% After Q3 Earnings
Walmart reported earnings last week, and the stock saw a nice move higher as it beat earnings and raised guidance. Walmart said it has seen growth among customers of all income ranges. The company said it saw an impact from SNAP benefits being paused, but rebounded quickly after people received those benefits once the government reopened. Walmart will look for this momentum to continue as it enters its busiest season of the year. (CNBC)
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Quiz
How much has the price of oil fallen year? (Scroll Down for Answer)
- -7%
- -12%
- -15%
- -19%
Answer:
- D) -19%, oil prices have continued to move lower this year and have helped keep inflation in the 2%-3% range this year despite tariffs. Oil prices tend to leak into many areas of the economy as the cost to move goods can rise or fall depending on oil prices.
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