Christmas came early for stock and bond investors this year. Last week, US stocks posted gains for the 8th consecutive week, a cumulative gain of 14.93% over these eight weeks. Also, consumer confidence rose, initial jobless claims were slightly below expectations, and both Personal Consumption Expenditures (PCE) and Core PCE for November fell short of forecasts. PCE decreased by 0.01% month-over-month and is up 2.6% from November last year. As a result of the lower inflation data, economist are adjusting their rate forecasts. Some now predict up to five Fed rate cuts in 2024.
We kicked off this week, celebrating the Christmas holiday. I hope you enjoyed the long holiday weekend with friends and family. Today, the S&P CoreLogic Case Shiller Home Price Index recorded a 4.8% annual home-price gain nationally in October, marking the quickest rise since December 2022. More gains could come as mortgage rates have decreased from the nearly 8% highs in October. With only three trading days left in 2023, this year’s market rally could culminate with the S&P 500 at or near all-time highs. Thank you for reading, and here’s to a prosperous new year!
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