Outlook9 Dec 2024 09:59
Ahoy, market mateys! Last week, the market ship caught a strong wind, sailing higher thanks to tech titans like Apple, NVIDIA, Microsoft, Tesla, and Amazon. Salesforce fired the cannons with stellar results, while employment data poured in like treasure maps.
Despite the data deluge, the seas stayed calm with no major mutinies in market fundamentals. Mid-December's here, and the institutional crew's prepping for their year-end portfolio polish—aye, it's window dressing season! A Christmas rally may be on the horizon, but beware of a few ominous storm clouds signaling potential risks.
All eyes are on two treasures: year-end rebalancing and the Fed's meeting on December 17-18—big waves could follow. Inflation news (CPI and PPI) drops anchor this week, with predictions of a wee inflation uptick. Looking to 2025, whispers of an inflation "echo bounce" might rock the boat, possibly sparking a small correction.
For now, keep your spyglass trained on CPI (Wednesday), PPI, and unemployment claims (Thursday). Employment's been steady, but the market map's still uncharted. Steady as she goes!