Weekly Market Update

Weekly Market Update for the Grand Protector

Market Summary:
This week was a mixed bag for US stocks as they bounced back from a rocky start to December, driven by hopes of a rate cut from the Federal Reserve next week. The S&P 500 (^GSPC) rose 0.5%, while the Nasdaq Composite (^IXIC) added 1.3% and the Dow Jones Industrial Average (^DJI) gained 1.2%.

Key Takeaways:
• Despite a strong late-November rebound, US stocks slid on Monday due to concerns over stubborn inflation and stretched market valuations.
• The Federal Reserve's path for interest rates remains a key focus, with traders pricing in an 87% probability of a quarter-point rate cut next week.
• Economic data has been mixed, but a softer-than-expected ADP reading on private employment reinforced bets on a Fed rate cut.
• On Friday, the delayed release of the PCE price index showed inflation rose about as expected in September, while the core PCE index cooled slightly.

Notable Stocks:
• Apple (AAPL) stock rose over 1.5%, closing at a record.
• Nvidia (NVDA) fell initially but reversed course and gained over 1%.
• Microsoft (MSFT) shares ended down 2.5% after The Information reported that the software giant is lowering its AI sales quotas.

What to Watch:
• Next week's Federal Reserve meeting will be closely watched, with traders pricing in a high probability of a rate cut.
• Economic data releases will continue to influence market sentiment, particularly the September PCE reading on consumer prices.
• The labor market has presented mixed signals this week, with jobless claims unexpectedly falling to a three-year low but corporate layoffs increasing.