Ho Hum Holiday Trading | January 6th, 2025

Last week, ended 2024 on a cautious note, as economic uncertainty surrounding the new administration and hawkish monetary policy dampened sentiment. December ended a stellar year for stocks with a modest pullback, but the S&P 500 still gained +23.31% in 2024, marking consecutive 20%+ annual returns for the first time since 1998. The first trading week of 2025 saw the S&P 500 and Nasdaq Composite slip -0.5%, while Small Caps outperformed, with the Russell 2000 up 1.1%. Bonds remained steady, with the 10-year Treasury yield at a 15-year high of 4.6%.

On the sports front, Chicago fans celebrated the Bears' season-ending win over the Packers and a strong week for the Bulls.

This week, markets face a shortened trading schedule, closing Thursday to honor former President Jimmy Carter. Key focus areas include Friday's December U.S. jobs report, projecting 150K nonfarm payroll growth, and the release of Fed meeting minutes on Wednesday. Additional economic data, including durable goods orders and services PMI, will shape expectations amid ongoing Fed rate cut deliberations.

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