In Markets "In a Nutshell"

Markets “In a Nutshell” for December 30, 2024

Investment Week at a Glance

Stocks finished higher for the week. The Dow Jones Industrial Average rose 0.4%, the S&P 500 was up 0.7%, and the NASDAQ rose 0.8%. Foreign stocks (MSCI EAFE) were also up, rising 1.8%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.63%.  (Data source: Wall Street Journal)

Fed Policy Heading Into 2025

2024 was all about when the Fed would start cutting rates and how much they would cut by. Now it looks like 2025 will be focused on when the Fed will pause their rate cuts and how much lower rates go in 2025. Currently, the market is pricing in 1-2 rate cuts for 2025 but that can change quickly as new data comes in on inflation and the overall economy. The most recent inflation report showed CPI (consumer price index) at 2.7%, remaining above the 2% target the Fed has set. Unemployment remains low at 4.2% and has not been a worry for the Fed yet. If we start to see weaker employment numbers, the Fed may look at cutting rates more than expected for 2025.

 Equities Slide to End Year

 

Equities have sold off in December as markets look to wrap up a strong 2024. The Dow Jones is down over 5% for December and has seen a 2,000+ point drop. Despite this, the Dow is still up double digits for 2024 and up over 25% since the start of 2023. Some reasons for the recent sell-off are the Fed changing their outlook on rate cuts in 2025 from 4 to 2. Another reason could be investors are making some profits before the end of the year and the recent downturn has created some tax-loss harvesting opportunities for investors.  The beginning of 2025 could set the tone for the rest of the year as whichever direction the S&P 500 goes in January, so goes the rest of the year.

Boeing Shares Fall After 737-800 Crash in South Korea

 

Boeing shares have had a rough 2024 and have once again moved lower after a crash in South Korea with one of their 737-800 planes. South Korea has ordered an inspection of all the 737-800 planes following this crash which has worried investors. Boeing has had several issues recently, most notably the 737 Max that had 2 crashes in 2018 & 2019. Investors will be paying close attention to the investigation to see if this was an unfortunate one-off event or something that could lead to a bigger issue for Boeing. (CNBC)

Quiz:

How much has gold increased in value in 2024? (Scroll Down for Answer)

  1. 13%
  2. 19%
  3. 26%
  4. 31%

 

Answer below.

 

Have a Great Week!

 

 

 

Answer:

Answer:

3.  26%, gold has been one of the leading asset classes for 2024.

 

 

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