Here's a summary of the key points:
- Stock markets experienced a seventh consecutive week of growth.
- The rise is attributed to moderated inflation, decreased bond yields, and lower mortgage rates.
- The Personal Consumption Expenditures Price Index (PCE) for inflation showed a 3% year-over-year increase, with core PCE at 3.5%, the smallest increase since 2021.
- Fed Chairman Powell hinted that the Fed might be done raising rates and discussed progress in addressing inflation and job market concerns.
- The Dow Jones Industrial Average closed at 36,254.50, up 2.4% from the previous week.
- The S&P 500 closed at 4,594.63, up 0.8%, and the Nasdaq closed at 14,350.03, up 0.7%.
U.S. Treasury Bond Yields:
- The 10-year treasury bond yield closed at 4.22%, down from 4.47% the previous week.
- The 30-year treasury bond yield ended the week at 4.40%, nearly unchanged from 4.60% last week.
- Monitoring bond yields is important as they influence mortgage rates.
- Mortgage rates for popular loan products, as per the Freddie Mac Primary Mortgage Survey on November 30, 2023, showed a decline.
- The 30-year fixed mortgage rate was 7.22%, down from 7.29%.
- The 15-year fixed rate was 6.56%, down from 6.67%.
- Rates dropped further at the end of the week, with the 30-year fixed going below 7% on Friday.
Investors are eagerly anticipating the November jobs report, particularly focusing on new job creation and wage increases. The positive market response suggests optimism regarding the economy, with the Dow, S&P 500, and Nasdaq all showing gains for the week.
Wishing you a great weekend as well!
