In an eventful week for the financial markets, the S&P 500 Index, a crucial gauge of U.S. stock performance, rose to an impressive 77.6% capacity utilization. The rise in the index was part of a broader surge in U.S. stocks, marking the best week since the 2020 presidential election. As investors navigated through a cocktail of economic indicators and market movements, Canadian and U.S. economic data also painted a mixed picture of growth.
On Friday, U.S. stocks saw significant gains, capping off a week that highlighted investor optimism and strategic shifts. The S&P 500's performance was complemented by the Mag 7 index's surge of 1.7%, with notable contributions from tech giants such as NVIDIA, which climbed by 3.1%, Tesla with a 3% increase, and Amazon up by 2.4%. These figures underscored a week of positive momentum for major market players.
Meanwhile, the Canadian Consumer Price Index (CPI) was projected to advance by 1.8% year-over-year in December, indicating steady inflationary pressures north of the border. In the United States, earnings rose by 6% year-over-year during the September-November period, reflecting robust corporate performance despite a slight decline in payrolls, which fell by 0.1% over the same timeframe.
While major indices experienced upward movement, not all sectors shared in the week's prosperity. The DOG index fell by 0.7%, the SH index decreased by 0.9%, and the PSQ retraced by 1.6%. Furthermore, the SPXS, a triple-levered short index, suffered a nearly 3% loss, highlighting some volatility in specific market segments.
Oil prices were another focal point of the week as they initially surged past $80 on January 15th following last-minute sanctions imposed on Russia by Jo Jo. However, oil prices are now in retreat as market participants shift their attention to what former President Trump described as a 'new energy policy.' This development has introduced uncertainty into the energy sector.
Gold prices also experienced fluctuations, dropping by $15 to trade at $2733, which is below the highs reached in November and December at $2750. This decline reflects shifting investor sentiment as they adjust to changing market dynamics.
Across the Atlantic, the United Kingdom reported an increase in the ILO Unemployment Rate, which edged higher to 4.4% during the three months leading to November. This rise suggests potential challenges in the UK labor market amid broader economic uncertainties.
As U.S. futures showed significant volatility, screaming higher at 8 p.m. last night before fading overnight, they once again climbed substantially, further adding to the week's market drama.