The S&P500 reached a record high close underpinned by a strong performance by technology companies. US Fed speakers push back against near term rate cuts as the blackout period begins for the January FOMC
Even though this was the darkest week of the year, with yesterday marking the winter solstice, we received several positive reports on the economy showing signs of a thawing housing market, slowing inflation, and resilient consumers. Financial markets picked up where they left off last week, with yields falling and equities rising. At time of writing, the S&P 500 is up 1.0% on the week while the two-year Treasury declined by 14 basis-points (bps) to 4.32%.
A concerted effort by various Fed officials over the past few days to dampen market expectations of multiple rate cuts in 2024 is not having the desired effect at the moment.