The Market Brief
Hey, team. U.S. futures edged higher overnight on this final trading session of 2024. Let’s recap yesterday’s session and see what’s next!
From all of us at the QuantVue team, we wish you a happy and successful New Year!
Macro Viewpoint
U.S. stock index futures ticked higher in the final trading session of 2024, positioning stocks to end a three-day losing streak and extend this year’s remarkable Wall Street rally.
The subdued momentum in equity markets highlights persistent concerns over the sustainability of the S&P 500’s impressive 24% gain this year, largely fuelled by the so-called "Magnificent Seven" group of tech giants.
A nearly 100-basis point reduction in interest rates by the Federal Reserve and a surge in technology stocks, driven by optimism around artificial intelligence boosting corporate profits, powered a strong surge in equities in 2024.
Still, equities stumbled in December, setting the S&P 500 up for its steepest monthly drop since April. This pullback comes amid rising Treasury yields, stretched equity valuations, and a cautious Federal Reserve stance.
