Weekend Update 12/21/2024
Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!
Markets turn red after the Fed lowers its #RateCuts forecast
🎄 Fed steals Christmas. As expected, the Fed cut rates by 25 bps at the December meeting. However, the Fed surprised investors by lowering next year’s outlook to just 2 #RateCuts. As we’ve been warning, the Fed blamed the cautious outlook on sticky #Inflation.
😅 PCE inflation beats. November Core PCE was up only 0.1% M/M cooling from +0.3% in October and below expectations for +0.2%. Markets rebounded with investors hopeful that the Fed’s #Inflation fears were overdone.
📉 Red Christmas. The lowered #RateCuts outlook sucked all the holiday cheer out of the market with the S&P 500 tumbling -3% on Wednesday. However, markets rebounded some on the positive PCE data to end the week down -2%.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.