Stocks finished the week with mixed results, as the S&P 500 (SPX) declined by 0.64% and the Dow Jones Industrial Average (DJIA) tumbled by 1.82%, its worst performance since October. Meanwhile, the tech benchmarks Nasdaq Composite (NDAQ) and Nasdaq-100 (NDX) gained for the fourth consecutive week, rising by 0.34% and 0.73%, respectively.
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Last week’s tech benchmarks’ outperformance was largely a “one-man show,” as it was driven by Friday’s surge in shares of Broadcom (AVGO), whose outlook for booming AI chip demand lifted stocks across semiconductor and hardware industries. Outside of the Hardware Storage & Peripherals, other S&P IT sector industries were in the red for the week.
Moreover, according to Bespoke Investment Group analysis, there were more decliners than gainers in all trading sessions in December so far, the longest such streak since the early 2000s. Many analysts sounded their concern about the return of the large-cap tech’s narrow market leadership, which could dent the viability of the stock-market rally.
Still, the Federal Reserve’s widely expected rate cut this week could support the stocks well into 2025, taking into account the traditional Santa rally that should also help investor optimism. Analysts from leading Wall Street investment firms anticipate that the S&P 500 build on its 27% climb so far in 2024, with some targeting gains of over 40% by year-end.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.
» December’s S&P Global Manufacturing PMI (preliminary reading) – Monday, 12/16 – The Manufacturing PMI captures business conditions in the manufacturing sector, which contributes a significant part of total GDP. This metric is considered an important indicator of business conditions and the overall economic climate in the U.S.
» November’s Retail Sales – Tuesday, 12/17 – This report provides information on the amount of money consumers are spending on both durable and non-durable goods. Retail Sales is a leading indicator of the economy’s health, providing an outlook into the current quarter’s economic growth as well as into the inflationary factors on the demand side.
» November’s Core Personal Consumption Expenditures (Core PCE) – Friday, 12/20 – This report reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy. FOMC policymakers use the annual Core PCE Price Index as their primary inflation gauge.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
