"U.S. equity markets ended the first week of December higher as investors looked ahead to the Federal Reserve's final policy meeting of the year. Expectations that interest rate cuts may be on the horizon supported market sentiment, even as economic data remained mixed. Technology stocks led gains, helping push the Nasdaq Composite higher, while small-capitalization stocks also performed well. Overall trading activity, however, was relatively quiet, suggesting investors are positioning cautiously rather than making aggressive moves."
"Manufacturing activity continued to decline for the ninth straight month, reflecting weaker demand, softer new orders, and reduced hiring. At the same time, prices within manufacturing have remained elevated, highlighting that inflation pressures have not fully disappeared. In contrast, the U.S. services sector showed strength, expanding at its fastest pace since February."
"Private payrolls unexpectedly fell, driven largely by reduced hiring among small businesses, and job cut announcements rose sharply. However, initial unemployment claims dropped to their lowest level in over a year, suggesting layoffs have not yet accelerated meaningfully. Inflation, measured by the Fed's preferred gauge, remained steady, while consumer sentiment improved modestly as inflation expectations declined."
U.S. equity markets rose as investors anticipated the Federal Reserve's year-end policy decision and potential interest rate cuts, with technology and small-cap stocks leading gains. Overall trading volumes were subdued, indicating cautious positioning rather than aggressive buying. Economic data showed a slowing but resilient economy: manufacturing contracted for a ninth month with elevated prices, while services expanded at its fastest pace since February with softer price growth. The labor market delivered mixed signals as private payrolls fell and job cuts rose, yet initial unemployment claims declined. Long-term Treasury yields rose, while high-yield bonds outperformed amid improved risk appetite.
Read at London Business News | Londonlovesbusiness.com
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