For week ended 11/9/2024.
Yes, Donald Trump won the election last week and if this is the first time you have read/heard of this development (while I appreciate being the first to tell you), you may also want to get out a tad more and stay a bit better informed.
Okay, in other news, the FOMC lowered baseline rates by the expected 25 bps last week as more uncertainty has now crept into their decision-making process. The current thinking from the election is proposed tax cuts, higher tariffs, and deficit spending, and a potentially reduced labor force are all inflationary. In such an environment, lowering interest rates may not be such a good thing. On top of this, Jerome Powell left no doubt that if Trump attempts to fire him before his term ends, he won’t go. Oh, how fun this is going to be!
Domestic stocks responded to all the above with their best week of 2024 as the S&P 500 rose 4.7%. Not to be outdone, small caps ended the week with an 8% gain. The bond market managed to get into the party, rising 80 bps as well. Overseas markets continued their ho-hum ways as the action remained at home. And with that, go forth and have a nice week.
My interesting data point of the week.
Source: Visual Capitalist
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