Stocks recorded another week of gains, lifting the Dow Jones Industrial Average, S&P 500 Index, and S&P 400 MidCap Index to record intraday highs. Domestic policy and geopolitical factors appeared to be large drivers of sentiment during the week. On Monday, investors seemed to welcome President-elect Donald Trump’s nomination of Scott Bessent, a veteran hedge fund manager, as Treasury secretary. News of a cease-fire agreement between Israel and Hezbollah, first reported Monday and formally announced Tuesday, seemed to support sentiment and may have overshadowed news that the president-elect plans to quickly impose 25% tariffs on imports from Mexico and Canada, along with an additional 10% tariff on imports from China. Energy stocks fell on the Israel-Hezbollah agreement, however, as oil prices pulled back in response to diminished fears of an expanding conflict involving Iran. On the macro side, US consumer data remains strong while the manufacturing slump continues. Trump’s pick of Bessent as Treasury leader appeared to drive a sharp decrease in long-term Treasury yields over the week, with the yield on the benchmark 10-year note tumbling about 15 basis points to its lowest level since October 24 as the market is now pricing just over 3 cuts into the end of 2025. EU stocks posted modest gains. Gold was lower on the week. The dollar traded lower this week. Bitcoin rallied for the 5th straight week. But Ethereum was the week's biggest winner, topping $36,000 for the first time since June.
Have a great week-end
Charles for the team