Hey there, readers!
It has been an eventful week for the markets, with some surprising twists and turns. Let's dive into the details.
The Labor Department's November report on consumer prices and the wholesale price report released on Wednesday suggested that inflation is coming down faster than expected. And then, the Federal Reserve's policy-setting committee left rates unchanged and hinted that they are done raising rates for now. Chairman Jerome Powell's press conference only reinforced the central bank's dovish tone, leading investors to believe that rate cuts are on the horizon.
Treasuries rallied, pushing yields lower, with the 10-year note falling below 4% by Thursday morning. Stocks also saw a boost, with the Dow Jones Industrial Average hitting a new record.
However, this exuberance poses a problem for the Fed. While they may want to lower short-term rates next year, they may not want long-term rates to drop much further. Enter the New York Fed's Williams, who tried to temper rate-cut expectations by stating that rate cuts are not on the table at the moment. But his remarks had little effect on the market, as the 10-year yield remained slightly lower than the previous day.
Despite the slight slowdown, the Dow closed the week higher, reaching a new record, while the S&P 500 and Nasdaq also saw gains.
Now, let's take a look at some other interesting news:
- AI Can Make 2 Billion+ Security Decisions Daily: AI-powered threat prevention is helping CIOs and CISOs mitigate advancing cyber risks and exposure. With over 40 AI and machine learning technologies, Check Point's ThreatCloud AI identifies and blocks emerging threats in under 2 seconds.
- Convenience Stores Would Rather Sell You Pizza Instead of Gas: Casey's General Stores, a Midwest chain, has become America's fifth-largest pizza purveyor. And Wawa, an East Coast-based chain, has gained a cult following for its sandwiches. Convenience stores are tapping into the food market, offering more fresh options.
- Don't Buy China's November Recovery: China's economic data is currently messy, so the better-than-expected growth figures for November should be viewed skeptically. Home prices fell, deflation deepened, and outstanding bank loans grew at a slow pace.
That's all for now, folks! Stay tuned for more exciting market updates.
Best regards,
Your friendly market enthusiast
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