S&P 500 equal weight ETF has closed beneath the open a record 14 days in a row and counting.
Previous record was 12 in December 2018. pic.twitter.com/H7lMrXQ5fL
— Ryan Detrick, CMT (@RyanDetrick) December 20, 2024
The stock market rebounded on Friday, closing out a tough week that saw the Dow Jones Industrial Average plunge 1,100 points in a single day and complete its longest losing streak since the 1970s. Cooler-than-expected inflation data helped fuel the session’s recovery. The 30-stock Dow gained 498.02 points, or 1.18%, to 42,840.26.
The S&P 500 added 1.09% to end at 5,930.85, while the Nasdaq Composite advanced 1.03% to close at 19,572.60. November’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation metric, increased 2.4% year over year.
Strong day but not for every sector; REITs rose most while both consumer sectors moved up by just 0.1% … small caps had a nice bounce but continue to lag large caps considerably MTD pic.twitter.com/r5e9RERFS8
— Liz Ann Sonders (@LizAnnSonders) December 21, 2024
This was slightly less than economists’ expectations and helped mitigate some of the bearish sentiment that arose earlier in the week when the Fed announced it would dial back future rate cuts due to persistent inflation.
Final December UMich Consumer Sentiment Index unchanged at 74 … expectations ticked up from 71.6 initial to 73.3, while current conditions fell from 77.7 initial to 75.1 pic.twitter.com/DIPUZD0BEb
— Liz Ann Sonders (@LizAnnSonders) December 20, 2024
All 11 sectors of the S&P 500 ended the day higher, with real estate and information technology among the biggest gainers. Just 53 stocks in the broad market index closed lower on Friday. Chicago Fed President Austan Goolsbee told reporters he was encouraged by Friday’s inflation figures and suggested that rates could still decline next year despite the central bank’s cautious stance.
“We’re still on a path to get to 2% inflation,” Goolsbee said.
Dow rebounds from steep losing streak
“At least for this new month, you don’t want to make too much out of any one month, but I’m hopeful that this suggests that the couple of months of firming were more of a bump than a change in path.”
Major indexes jumped intraday following Goolsbee’s comments, leading to a positive end to a tumultuous week.
During Thursday’s trading session, the Dow eked out a 15-point gain, ending a 10-day losing streak, its longest since 1974. This small gain came a day after the Dow plunged 1,100 points on Wednesday. The Fed’s indication of just two rate cuts next year, instead of the four initially forecasted, was a catalyst for the decline.
“Today has calmed people down,” said Tom Fitzpatrick, managing director at R.J. O’Brien and Associates. “[It’s] unlikely we get a downside catalyst now ahead of Christmas and New Year’s, so [the] moves of the last few days can get unwound a bit.”
Even with the major averages jumping on Friday, all three posted losses on the week. The Dow lost nearly 2.3%, notching its third straight losing week.
The S&P 500 fell almost 2% week-to-date, while the Nasdaq Composite was off by about 1.8%. Elsewhere, a Trump-endorsed House Republican measure to fund the government for three months failed on Thursday. Without a deal, a partial shutdown is slated to start late Friday night.
