U.S. stocks advanced during the holiday-shortened week, with the S&P 500 Index and Dow Jones Industrial Average both hitting record highs. News flow and trading volumes were generally light throughout the week, but some recent favorable economic data alongside artificial intelligence (AI) optimism appeared to support positive sentiment. The small-cap Russell 2000 Index was the worst performer of the major indexes, finishing the week 0.19% higher. On the macro front, the U.S. economy expanded at the fastest pace in two years during Q3, as U.S. real GDP grew at an annual rate of 4.3%, ahead of the second quarter’s 3.8% growth rate and well above estimates for around 3%. Meanwhile, October durable goods orders swing negative, and consumer confidence weakens amid worries around jobs and business conditions. U.S. Treasuries generated positive returns, with yields fluctuating across most maturities but generally ending modestly lower. The dollar suffered its worst week since June to end the week at its lowest since the start of October. The pan-European STOXX Europe 600 Index ended 0.20% higher while the Nikkei 225 gained 2.5%. Gold and silver prices surged, continuing the year-to-date runup for precious metals. Crude oil prices had a solid week, until Friday, as investors assessed a step forward in long-stalled Ukraine peace talks which could lead to a deal that allows more Russian oil into global markets grappling with oversupply. Crypto had another tough week with bitcoin down for the 4th straight week.
Have a great weekend and happy new year!
Charles & Syz Research Lab