Market View

The Federal Reserve’s preferred inflation figure – the personal consumption expenditures price index (PCE) rises to 2.3% annually, in line with the expectation, which increases the odds of another rate cut in the near term. On the other hand, President-elect Donald Trump’s proposed policies, including tariffs and immigration reforms, could lead to an inflationary environment, which increases the uncertainty regarding what the Federal Reserve’s next move would be in its easing cycle. The Canadian dollar was 71.38 cents USD. The U.S. S&P500 ended the week up 1.0%, while the TSX was up 0.6%.

A lot more greens this week than reds. Consumer staples and technology gained 2.9% and 2.6%, respectively. Real estate and industrials added 1.8% each, while financials edged up by 1.2% and consumer discretionary gained 0.8%. Energy and materials ended the week down 2.8% and 1.3%, respectively. The most heavily traded shares by volume were Suncor Energy, Sun Life Financial and Great-West Lifeco.

5 from 5i

Here are five reads we found interesting last week:

• 10 Reasons for Investors to be Thankful in 2024, by Dan Lefkovitz of Morningstar.
• Stocks are in the midst of their best two years since the dot-com boom, written by Matt Phillips of Sherwood News
• 3 Predictions for the Next 10 Years, published by Nick Maggiulli of Of Dollars and Data
• Timing the Housing Market: When Should You Sell?, written by Ben Carlson of Ritholtz Wealth Management LLC
• Three reasons why investors are brushing off Trump’s tariff threats, written by Luke Kawa of Sherwood News 

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.