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S&P 500 is on Fire

S&P 500 is on Fire

November 22, 2023

The Major Markets are on fire! S&P 500 notches its third consecutive week of gains, boasting an impressive 7.64% return for November so far - the best since October last year.

Last week's standout was Tuesday, with a surge attributed to the October Consumer Price Index. The year-over-year CPI reading at 3.2% (below the estimated 3.3% and prior 3.7%) signaled a desire for economic weakness to combat inflation.

Treasuries witnessed a significant yield drop, with the five-year shedding 20 basis points. Bond indices rejoiced, as the Bloomberg Barclays aggregate bond index added 1.37% last week, propelling it back into positive territory for the year.

The CME Group's Fed Watch Tool indicates near certainty (99.8%) of rates holding at the 525-550 level for December's FOMC meeting, with January at 97.8%. March introduces less certainty, hinting at possibilities of rate decreases in the future.