Last Week
Prices on Wall Street were sideways, while trading volume was extremely heavy thanks to “triple witching”, a quarterly phenomenon when stock options, index options, and futures contracts all expire. Declining issues outnumbered advancing issues by a factor of 5-4, reversing the ratio from the previous week. A decent rally on Friday allowed the S&P 500 and the Nasdaq Composite to both manage to eke out small gains, while the Russell 2000 slipped 0.9%. The commodity trends remained in place, with Crude Oil slipping and Gold moving higher. The Oil & Gas sector was the worst performer, posting a loss of 2.8%. The yield on the 10-year Treasury inched 4 basis points lower to 4.15% and the Dollar was steady.
On the surface, the economic data reinforced expectations of further Federal Reserve rate cuts, given a cooling labor market and tame inflation; however, analysts questioned the reliability of the releases. One economist called the data collection “whacky,” pointing out that several of the inputs replaced missing data with overly optimistic assumptions.
In terms of international relations, the tariff teeter-totter was quiet; however, President Donald Trump did order a blockade of all sanctioned oil tankers entering and leaving Venezuela and designated the Maduro regime as a foreign terrorist organization. We hope that 2026 will bring greater peace and cooperation in global affairs. International trade has had a meaningful positive effect on economic growth, and there are no winners in war.
On the Chicago Sports Scene, the Bulls put together a three-game winning streak with back-to-back victories over the Cleveland Cavaliers, followed by a thrilling 152-150 win over the Atlanta Hawks.
Meanwhile, on a windy Saturday evening at Soldier Field, the Bears beat the Green Bay Packers in one of the most exciting comebacks in franchise history! Bear Down and make your travel plans for the 2026 Super Bowl!!!
This Week
The markets will close early on Wednesday and remain closed on Thursday in observance of Christmas. Investors will be roasting chestnuts on an open fire and sipping eggnog, leading to quiet trading as the year-end approaches, with the Santa Claus rally on deck.
The stocks mentioned above may be holdings in our mutual funds. For more information, please visit www.nsinvest.com.