US equity indexes rose this week as the odds of a third consecutive interest rate cut remained elevated amid supportive macroeconomic data and as leadership returned to high-growth sectors.
* The S&P 500 closed at 6,870.40 on Friday versus 6,827.70 a week ago. The Nasdaq Composite stood at 23,578.13 compared with 23,288.16 a week earlier. The Dow Jones Industrial Average ended at 47,954.99, versus 47,552.55 at the end of last week.
* Technology and communication services were the top two sectors this week, a return of leadership to high-growth areas. Over the past month, the leading three peer groups were basic materials, communication services, and healthcare.
* The annual growth in the core price consumption expenditures price index, the Federal Reserve's primary gauge of underlying inflation trends, slowed in September. The month-over-month rate remained unchanged, as expected.
* Employment in the US private sector unexpectedly fell in November, ADP, a payroll processing firm, said. Jobs fell by 32,000, marking the largest decline since March 2023, as per a Stifel note, versus consensus for a 10,000 increase in a Bloomberg-compiled survey.
* The Bureau of Labor Statistics won't publish October employment data that was delayed due to the federal government shutdown. The November jobs report is scheduled for release about a week after the Fed's policy decision on Dec. 10.
* Initial jobless claims fell to 191,000, the lowest since September 2022, in the week ended Nov. 29, below expectations in a Bloomberg-compiled survey. The latest read exceeded the lowest prints since the 1960s by only about 10,000, according to a Jefferies note. "This week's reference week includes Thanksgiving, which is notorious for making seasonal adjustment difficult."
* The probability of the Federal Reserve cutting rates by 25 basis points on Dec. 10 stood at 87% late on Friday, after hitting 90% earlier in the week, according to the CME FedWatch tool. The likelihood was 62% a month ago.
Comments