Last week markets were all about the spectacular performance of Nvidia which lifted the entire sector, US markets and even the global markets. Strong data from the US suggests that interest rate cuts may be pushed somewhat into the future than what the market has currently priced in.
Markets retained their bullish tone through most of the week. Strong economic data, suggesting stronger than expected economic growth without inflation spiking, seems to have shifted attention away from interest rates for now. The upcoming week is a busy one, with the January FOMC meeting due midweek and several mega-caps reporting earnings, and should help
The Santa Claus rally at the end of December did not materialize. Historically, in such situations the performance over the first five days of January has been a very good indicator for the year’s performance. Unfortunately for stock market bulls, the S&P 500 delivered a negative return. Will history repeat itself?