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This Week’s Market Recap… 📊

It’s been an eventful week for the markets, with inflation data, the start of earnings season for major banks, and Senate confirmation hearings dominating headlines. So far, the market has reacted positively, making this the strongest week of returns since the election.

On Wednesday, the CPI report came in slightly below expectations. Markets had recently been pricing in a sharp rebound in inflation, pushing bond yields higher and equities lower. Forecasts for Fed rate cuts had also dropped from four just a few months ago to only one. However, this more dovish CPI report has led many investors and economists to anticipate more than one rate cut this year.

Earnings season kicked off in earnest, with major banks like JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo reporting on Wednesday. The results showed few signs of weakness, as all the banks delivered strong earnings, and their CEOs expressed significant optimism about the banking sector under the incoming Trump administration. Morgan Stanley and Bank of America followed up on Thursday with better-than-expected results, further underscoring the strength in the financial sector.

Meanwhile, Senate confirmation hearings began for President-elect Donald Trump’s cabinet picks. Of particular interest to investors was the hearing for Treasury Secretary nominee Scott Bessent. He performed well, addressing questions from both sides of the aisle. Bessent indicated that additional sanctions on Russia are forthcoming, fiscal spending needs to be reined in, and that Trump’s policies would not lead to inflation.

After a few challenging weeks in the markets, this week provided some much-needed relief. With strong economic data and robust earnings reports, the economy appears to be on solid footing.

Have a wonderful weekend!!

Top ETFs on our Radar… 📈

The iShares Expanded Tech-Software Sector ETF has performed exceptionally well this year. Software companies have shown strong performance as investors seek to identify the next big winner in AI.

Tune in every Monday and Friday for in-depth Market Analysis, Recaps, and a featured Stock & ETF.

Thanks for reading and have a great week!

-Ryan

@Theinvestingauthority