Price Return Last Week
S&P 500 +4.7% S&P Mid Cap +6.3% Russell 2000 +8.6%
MSCI EAFE 0.0% MSCI EM +1.2%
10 Yr US Treasury Rate – fell from 4.36% to 4.34%
Source: Refinitiv Eikon
Recent News
Stock Market Advances – U.S. stocks surged the day after the election with the S&P 500 up 2.5% alongside the Russell 2000 small cap stock index, which was up 5.8%. It was the best post-election day rally in the history of both indexes. All U.S. stocks added $1.6 trillion in market value for the fifth largest increase in market cap in a single day.
Source: Refinitiv Eikon, The Wall Street Journal, MFS
Fed Cuts Again – As expected, the Federal Reserve made the decision to lower short-term interest rates by another 0.25% on Thursday. This reduces the federal-funds rate to a range between 4.5% and 4.75%. All 12 voting members agreed with the decision. When asked about what impact the election may have on Fed policy, Fed Chair Jerome Powell stated “we don’t guess, we don’t speculate, we don’t assume” but didn’t currently see a “near-term” impact on monetary policy. Powell also reaffirmed his decision to stay at the Fed for the full length of his term through May 2026 and refuse to resign if asked. When asked if a president could remove him, Powell replied that it was “not permitted under the law.”
Source: Thomson Reuters, The Wall Street Journal
Interest Rate Forecast Moves Higher – Forecasts for short-term interest rates have moved significantly higher over the last month. The market is currently predicting short-term rates to be 3.81% at the end of 2025. This is a sharp contrast to one month ago, where the estimate was just 3.38%. Investors assign an 85% probability of another interest rate cut in December and then the Fed taking a pause at the following meeting in January.
Source: Refinitiv Eikon, The Wall Street Journal, Thomson Reuters
The Long and Winding Road – Beyoncé took home 11 Grammy nominations on Friday to become the most nominated artist in Grammys history. She will be competing against The Beatles for Record of the Year as their new song “Now and Then” earned them a nomination for the first time since 1997. The Beatles first Grammy win came in 1965 when they won for best new artist. They have collected seven Grammys in total, including one for album of the year in 1968 following the release of “Sgt. Pepper’s Lonely Hearts Club Band.”
Source: CNN, NPR
Upcoming Events
11/11 – Veterans Day
11/12 – Notable Earnings Reports: Home Depot, Occidental Petroleum
11/13 – CPI, Notable Earnings Reports: Cisco
11/14 – PPI, Notable Earnings Reports: Walt Disney, Copart
11/15 – Retail Sales
Source: Refinitiv Eikon
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