Weekly Market Update

Weekly Market Update

The stock market saw significant movements this week, with various factors influencing investor sentiment. On Monday, US stocks fell as investors waited for the November jobs report and other economic data to set expectations for interest rate cuts in 2026. However, tech stocks rebounded on Tuesday after Tesla's record-breaking share price.

Key Takeaways

1. The jobs report showed an uptick in jobs added last month but also found the unemployment rate jumped to a 2021 high.
2. The Federal Reserve has scope to cut rates, hinting at 50-100 basis points of room for policy easing.
3. Tech stocks continued to be under pressure due to AI trade worries and concerns about overcooked expectations.

Market Outlook

Despite the volatility, analysts remain optimistic about the stock market's prospects in 2026. Many see a shift in monetary and fiscal policy as a major driver for earnings growth, with Wall Street optimism fueled by President Trump's influence on a reshaped Federal Reserve.