Market developments
Equities:
The S&P 500 notched a third consecutive weekly gain despite a slowdown in momentum. Traders are closely watching the upcoming labour market figures, with economists forecasting a rise in U.S. payrolls for January. Additionally, results from mega caps like Apple, Microsoft, and Alphabet are expected next week and will play a crucial role in shaping market sentiment. The ongoing fourth-quarter earnings season will be a key factor in determining the market’s direction in 2024.
Fixed income:
Mixed economic data has kept Treasuries under pressure on Wall Street, with traders betting the Federal Reserve will signal patience before considering rate cuts in 2024. Shorter maturities led bond losses as personal spending exceeded estimates, while underlying inflation slowed. Investors, though still anticipate a rate cut in Q1, and are fully pricing in a cut in May.
Commodities:
Oil closed higher for the largest weekly gain since September. Factors such as lower U.S. stockpiles and the prospect of more government stimulus in China have propelled crude oil out of its recent stagnant range.