Economic Data and Market Highlights
Former President Donald Trump decisively won the US Presidential election on Wednesday, the Fed cut rates by 25 basis points and markets reacted favorably. For the week, the S&P 500 rose 4.69% and the rally was broad based with the equal-weighted version up 4.31%. The Dow Industrial Index made two changes replacing Intel and Dow Inc with Nvidia and Sherwin Williams. Tesla’s stock also surged as Elon Musk is likely to have a role in the next administration. Bitcoin was also another single asset winner surging to 80,000, an all-time high. As of this writing the Trump campaign has suggested the US government would create a bitcoin reserve. Small caps saw significant appreciation with the Russell 2000 rising 8.61%. Developed markets were flat advancing only 7 basis points.
Arbor Data and Realtor.com published a report noting that housing inventory rose almost 30% on a year- over- year basis as high rates priced out many home buyers.
Much of the new capacity has been in the multi-family housing space as Redfin released a report this week stating that almost 650,000 units were added over the last 12 months, the fastest pace since 1994.
The US Federal Reserve cutting rates 25 basis points was largely expected but bond volatility has been increasing. Further, in Powell’s press conference, he noted that the Fed is not in a rush to lower rates. The 10-year has been getting a fair amount of attention as of late. Historically, after the first rate cut, it has trended lower. However, in the current easing cycle, the 10-year has increased.
The Past Week’s notable US data points
The Upcoming Week’s notable US data points
