Disinflationary Economic Data Spurred Significant Rallies

Disinflationary economic data spurred significant rallies across equity and fixed-income markets during November as investors began pricing in fed rate cuts in mid-2024. Recent inflationary reports suggest that inflation is easing. The Federal Reserve is targeting 2.0% inflation.

Heading into the holiday season, the U.S. Economy is still going strong, with employment full, housing demand robust, and consumer spending stable. Eyes will be on the upcoming jobs numbers that are released Friday. The U.S. economy is expected to add 187K jobs in November, up from 150K jobs the month prior. While Unemployment is expected, it remains unchanged month over month at 3.9%.

This has also been a good year for equity markets as the possibility of a soft landing becomes more realistic. At the time of this recording, the S&P 500 is up about 20% YTD, and international development markets are up over 10%.

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