Big Bounce | January 21st, 2025

Last Week: Tame inflation data spurred a market rally, with the S&P 500 posting a 2.9% gain, the Nasdaq up 2.5%, and small caps leading at nearly 4%. Lower-than-expected PPI and CPI reports renewed hopes for Federal Reserve policy easing in 2025, while strong bank earnings further fueled optimism. The Oil & Gas sector surged over 6% amid rising commodity prices and new Russian sanctions. Biden's presidency ended with a 55% market gain, the fourth-best in history during a presidential term.

This Week: Markets face a holiday-shortened schedule with light economic data, highlighted by Friday’s Manufacturing and Services PMIs. Earnings season ramps up as 43 S&P 500 companies, including Netflix (NFLX), Procter & Gamble (PG), and Johnson & Johnson (JNJ), report Q4 results.

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