Fed's surprise (very) hawkish stance sends 10-year US Treasury yields soaring above 4.5% - the highest since May 2024 - setting the stage for an uncertain 2025.

U.S. stocks declined during the week, although a rally on Friday helped major indexes recover some of their lost ground. Losses were broad-based, though smaller-cap indexes generally fared worst. The Fed’s rate cut announcement on Wednesday (25bps) was largely expected. However, sentiment turned negative as investors digested hawkish forecasts and commentary from Fed officials regarding the path forward for interest rates. The hawkish tone helped drive the S&P 500 Index lower by nearly 3% for the day, its second-worst day of the year. Political uncertainty in the form of a looming government shutdown also seemed to rattle investor confidence. In economic news, the U.S. Real GDP grew 3.1% in Q3, outpacing a previous estimate of 2.8%, partially owing to increases in consumer spending.

The Fed acknowledges that fiscal dominance has arrived in the US

Global markets brace for central banks’ final 2024 moves, as the Fed prepares for another rate cut, Europe faces spread compression amidst rising rates, and emerging markets navigate a mixed landscape of tightening spreads and fiscal adjustments.

Interest expenses soar in the US while ECB and SNB cut rates. Each week, the Syz investment team takes you through the last seven days in seven charts.

Most US equities indexes ended the week lower, although the tech-heavy Nasdaq Composite advanced modestly and cleared the 20,000 mark for the first time. The Russell 2000 Index recorded a second consecutive week of underperformance against the S&P 500 Index. Growth stocks posted a third consecutive week of outperformance versus value, thanks in part to gains in shares of Tesla (12%) and Alphabet (8.4%). On the macro-economic side, stagflation fears started to rise once again. Indeed, YoY CPI and PPI both accelerated. Meanwhile overall macro surprises disappointed for the fourth week in a row: on Thursday, the Labor Department reported a surprise jump in weekly initial jobless claims to a two-month high of 242,000.

A tale of two central banks: the ECB navigates stagflation and the SNB fights deflation pressures coming from CHF strength

Central banks face a delicate balancing act, with the Fed set for a likely December rate cut amid resilient U.S. growth, while the ECB prepares for gradual easing as political instability and slowing inflation grip Europe.

Bitcoin rings the bell at $100,000 and continues to deliver massive ETF inflows, while global debt hits a new high. Each week, the Syz investment team takes you through the last seven days in seven charts.

Nasdaq was the week's biggest winner among the US majors equity indices in a week that saw the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite all continue to hit record highs, while the Russell 2000 Index declined after back-to-back weeks of outperformance versus its larger-cap peers. The Russell 1000 growth index outperformed Russell 1000 value by 553bps, the largest margin since March 2023. Sector performance was also widely dispersed as consumer discretionary, communication services, and IT stocks all gained over 3% for the week, while energy, utilities, and materials stocks all fell over 3%. Geopolitical headlines through the first half of the week were largely dominated by French and South Korean politics, though these seemed to have limited impact on U.S. markets.