Weekly Update – December 30, 2024
The Week on Wall Street
Stocks notched a slight gain over the holiday week. A tech-driven rally in the first half of the week was clawed back in the second half as investors took profits following the market holiday.
The Standard & Poor’s 500 Index advanced 0.67 percent, while the Nasdaq Composite Index rose 0.76 percent. The Dow Jones Industrial Average added 0.35 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.54 percent.1,2
Ho-Ho, Then No-Go
Stocks rallied during the first half of a shortened holiday trading week. Holiday cheer won out despite news of declining consumer confidence in December, a drop in durable goods, and new home sales reporting below expectations.3,4
The “Santa rally” lost its ho-ho-go after the midweek holiday. Megacap technology stocks led markets down on Friday, giving back most of the gains from the first half of the week.4,5
The Real Santa
While Santa got the headlines, the consumer drove the holiday shopping sleigh this year.
Holiday spending—defined by the period from November 1 through December 24—rose 3.8 percent in 2024, compared with 3.1 percent in 2023. Economists closely follow consumer activity since consumer spending makes up roughly two-thirds of total gross domestic product. Market watchers attributed the strong job market and growth in household wealth as the primary drivers of consumer strength.6
THIS WEEK: KEY ECONOMIC DATA
Monday: Pending Home Sales. 3-Month Treasury Bill Auction.
Tuesday: Case-Shiller Home Price Index.
Wednesday: Stock market closed.
Thursday: Jobless Claims. EIA Petroleum Status Report. Fed Balance Sheet. 30-Year Treasury Bond Announcement.
Friday: Motor Vehicle Sales. ISM Manufacturing Index. Federal Reserve Officials Thomas Barkin and Mary Daly speak.
THIS WEEK: COMPANIES REPORTING EARNINGS
Friday: The Greenbrier Companies, Inc. (GBX)
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1. The Wall Street Journal, December 27, 2024
2. Investing.com, December 27, 2024
3. MarketWatch.com, December 23, 2024
4. CNBC.com, December 26, 2024
5. The Wall Street Journal, December 27, 2024
6. MarketWatch.com, December 26, 2024