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Market Recap
WEEK OF DEC. 23 THROUGH DEC. 27, 2024
The S&P 500 avoided a third straight weekly loss, rising 0.7% and bringing its year-to-date gains to 25% with two trading days remaining in 2024. The benchmark equity index ended Friday's session at 5,970.84, up from the previous week's close of 5,930.85. The S&P 500 closed at an all-time high of 6,090.3 on Dec. 6. Tuesday will be the last trading day of the year.
"Investor sentiment is high entering 2025 as several of the 2024 positive trends that remain in place were bolstered by November (US presidential) election results, which ignited pro-growth policy expectations," D.A. Davidson said in a Friday note to clients. "This sets up conditions for equity prices to move higher if the US economy sustains growth above 2% and corporate earnings grow above 10%."
The effect of a so-called "Santa Claus" rally in the US stock market could reverse early next year amid the prospect of new trade policies or tariffs under the incoming Trump administration, Saxo Bank said in a report published this week. The Santa rally refers to the tendency for stock markets to move higher during the last week of December and the first two trading days of January.
US markets were closed Wednesday for Christmas. Retail sales increased more than expected during the holiday season and came in above last year's growth pace, according to preliminary data from a Mastercard (MA) report.
Among sectors, energy and health care were the best performers for the week, rising more than 1% each. Only consumer staples and materials posted losses.
In health care news, the US Food and Drug Administration said it is proposing a rule to set up and require standardized testing techniques to detect asbestos in cosmetic products that contain talc.
The technology sector's 0.9% weekly rise was aided by several major chip stocks, with Broadcom (AVGO) soaring 9.5% and artificial intelligence chip darling Nvidia (NVDA)rising 1.7%
The financials sector also posted a 0.9% gain for the week. Certain US bank and business groups filed a lawsuit against the Federal Reserve over alleged "flawed" stress-testing framework.
Consumer discretionary rose 0.5%, aided by a 4.9% jump in coffee chain Starbucks (SBUX) as employees returned to work Wednesday after a five-day strike. Electric vehicle maker Tesla (TSLA) logged a 2.5% weekly gain.
Within consumer staples, the US Consumer Financial Protection Bureau sued retail giant Walmart (WMT) and financial technology company Branch Messenger on allegations that they forced delivery drivers to use costly deposit accounts to get paid. Walmart registered a 0.6% weekly decline.
This week's economic calendar will feature the Institute for Supply Management and S&P Global's US manufacturing sector data for December. Reports on pending homes sales for November and house price data for October are also due this week. Markets will be closed this Wednesday for New Year's Day.
