Stock Market Recap.week of Nov. 28th - Fed Rate hikes move markets

Good afternoon and welcome to Quiver Financial news and this week’s episode of our Market Recap.  Today is Friday Dec. 2nd and these are the top stories for the week of Nov. 28th.  Welcome back everyone.  We hope you all had a good Thanksgiving.  This week was a busy week for news that could affect the stock market.  However only one thing really had an impact.  That was Powell’s speech.

Markets rallied during his speech as stated that they will be slowing how fast they raise rates.  This was expected but markets seemed to have taken it as they were done raising rates.  He still announced that the next rate hike in December will be 50 basis points.  These types of rallies are very indicative of bear markets rally.  Never in history has the economy done well during a time period of Fed tightening so we continue to be cautious going into year end.  2023 is still looking to be ugly.

Other noteworthy data that came out this week that had no effect on markets was a weak pending home sales that fell by 4.6%.  Oil inventories fell by over 12 million barrels.  Private payroll lower than expected, PMI came in at 49% and GDP was 2.9% however, corporate profits fell by 1.1%.  None of these negative reports seemed to phase the markets.  The only other data that did have an effect on markets was the Jobs report released today.

Jobs came in stronger than expected and the markets reacted negatively.  Maybe because investor have started to realize these numbers are becoming more and more skewed when you look at the raw data.  Large number of these new jobs came from people taking on a second job.

Price action this week, means the year-end rally may have happened in one day and we could see a little more volatility going into year end.  Bears need to be cautious here as well and Bulls.

Something to watch for next week is the price cap on brent crude and if OPEC cuts production.

And those are the top stories from this week that investors should be paying attention to.  Thank you for listening and stay tuned for next week’s Market recap.