Desla's Weekly Market Update: December 30, 2024

Desla's Weekly Market Update: December 30, 2024

 

Analyzing the Indices, Economic Trends, and Sector Highlights

 

Stock Market Performance

 

Broad Indices Performance 

The stock market displayed mixed results this past week, with key indices showing varying performance and sentiment. Notably, the anticipated Santa Claus Rally, which typically brings positive market movement in late December, did not occur.

 
Economic Data 

 

Consumer Spending  

Consumer spending remained strong, indicating continued confidence among consumers. This sustained level of spending is a positive sign for the economy, as it supports overall growth and business revenues. 

 

Durable Goods Orders 

In contrast, durable goods orders declined, hinting at potential slowing growth and indicating that businesses may be becoming more cautious about future economic conditions.

 

Treasury yields  

Treasury yields remained elevated throughout the week, reflecting continued market uncertainty regarding future Federal Reserve actions. Investors are closely monitoring the Fed’s stance on interest rates, which will significantly influence market dynamics in the coming months.

 
Sector Highlights 

• The technology sector continued to outperform other sectors, driven by strong earnings reports from major companies.

• Conversely, the energy sector lagged, primarily due to declining oil prices and a push for renewable energy sources, which may be influencing investor sentiment toward traditional energy stocks. 

 
Global Events 

 

Geopolitical Tensions 

Ongoing geopolitical tensions have weighed on investor sentiment, contributing to market volatility.

 

Global Supply Chain Disruptions 

Global supply chain disruptions are posing challenges for business and economies worldwide.

 

 

Desla’s Thoughts

As we transition from the Holidays into the anticipation of a new year, the markets have demonstrated resilience with modest gains, despite sector-specific challenges. The lack of the typical Santa Claus rally for the second consecutive year has raised concerns among certain analysts about potential market challenges in the upcoming year. Given the current market uncertainty, it is crucial to have a carefully developed investment strategy.

 

At Desla Wealth Management, our Tactical Growth Strategy is designed to navigate nuanced market dynamics. We focus on diversified investments poised to perform well given current trends, while emphasizing stability in sectors where risk outweighs return. Additionally, our Ten Stock Strategy continues to demonstrate its potential for consistent growth over the mid-to-long term.

As we look ahead to the new year, it is a prime moment for reflection and proactive steps. This season offers a valuable opportunity to reassess your financial goals and optimize your portfolio to achieve them. Allow Desla Wealth Management to empower you to start 2025 with confidence.

Subscribe to our insights page for exclusive weekly updates as we continue to monitor market conditions and adjust our strategies accordingly. With our guidance and commitment to your financial success, we will help you eliminate the noise and make informed decisions.