U.S. equities declined during the week. Small-cap stocks underperformed their large-cap peers for the fifth week in the past six weeks, as the Russell 2000 Index dipped into correction territory. Value stocks held up better than their growth counterparts. The Nasdaq Composite fell 2.34%, its biggest weekly drop since mid-November. The week started on a positive note following a report that the incoming Trump administration’s proposed stance on tariffs was likely to be softer than previously indicated. However, optimism faded throughout the week after President-elect Donald Trump refuted these reports and several pieces of economic data fueled concerns about stubborn inflation. On Friday, monthly nonfarm payrolls report for December showed that the U.S. economy added 256,000 jobs during the month, well ahead of consensus expectations for 155,000. Stocks turned sharply lower on Friday following the data release, solidifying the major indexes’ losses for the week. U.S. Treasury yields were higher heading into Friday and jumped following the blowout jobs report, with the benchmark 10-year U.S. Treasury note yield touching its highest intraday level since November 2023. Oil was the week's biggest winner, soaring on Friday on the heels of additional Russian sanctions and colder temperatures. The pan-European STOXX Europe 600 Index was 0.65% higher on the week while the Nikkei 225 Index fell 1.8%. Despite the dollar's strength, gold surged this week - back up near $2700. Bitcoin was volatile.
Have a great week-end
Charles for the team