What we’re reading (1/1)
“How The Stock Market Defied Expectations Again This Year, By The Numbers” (Associated Press). “U.S. stocks ripped higher and carried the S&P 500 to records as the economy kept growing and the Federal Reserve began cutting interest rates. The year featured many familiar winners, such as Big Tech, which got even bigger as their stock prices kept growing. But it wasn’t just Apple, Nvidia and the like. Bitcoin, gold and other investments also drove higher.”
“Concentration” (Bespoke). “Over the past decade, the largest stocks’ share of market cap has steadily been growing, and actually, this isn't the only record high to highlight with prior records being set at 29% at the end of 2021 and 30% last year. With that said, the 5.6 percentage point jump versus last year is one of the largest one-year increases in concentration at the top that we've seen.”
“Hopes for a ‘Santa Claus Rally’ Fade on Wall Street” (Wall Street Journal). “There are a number of reasons stocks tend to rally near the end of the year. Traders rebalance their portfolios. Some invest their end-of-year bonuses into the market. Lighter trading volumes around the holidays can amplify stock moves. Investors this season are struggling to embrace the holiday cheer. Speculative assets including bitcoin and economically sensitive stocks such as small-caps have pulled back from the highs they set after Donald Trump’s election victory. The big tech stocks that led the market higher in 2024 stumbled during the last few days of the year. Strategists said that could be due to a slew of uncertainties facing markets.”
“Here’s Where Wall Street Sees Stocks Heading After The Best 2-Year Stretch Since ‘97-’98” (Yahoo! Finance). “With strong earnings expected from a widespread array of companies in 2025 and US economic growth anticipated to remain resilient, the fundamental story for further market increases remains intact for 2025.”
“Oil Kicks Off New Year Higher On Signs Of Lower US Stockpiles” (Bloomberg). “Oil has been stuck in a narrow range since mid-October, with Brent posting a modest annual decline and WTI ending 2024 little changed. Investors are bracing for a glut this year, making it harder for OPEC+ to revive idled production[.]”
