Your weekly market update! Unpack notable earning reports, a Fed meeting that left interest rates unchanged, and what we can expect with the rising oil costs.
This week on 7 Market Movers, find out what’s making headlines, including a second interest rate cut, strong corporate earnings, and positive equity markets.
In January, Fed Funds futures, which imply the market-based odds of a Fed rate move, were only pricing in one and a half rate cuts for 2025, meaning that sticky inflation and a healthy job market made aggressive economic loosening unlikely.
With the US presidential election in the rearview mirror, US equities climbed higher in November and bond yields declined. Risk assets continue to be supported by a positive macroeconomic backdrop, solid earnings growth, and an accommodative Fed.
It was a soft week for equities, and for bonds too, whose prices fell as interest rates continued their ascent that began after the central bank lowered the Fed Funds rate in September (bond prices move opposite interest rates).