Market Watch – Key Highlights of the Week

Happy Thanksgiving!

As we gather with loved ones, it's also a good time to reflect on recent economic developments that might impact our financial decisions.

In this issue, we're doing something a little different.

Instead of our usual deep dive into strategies and chart patterns, let’s take a look at what moved the markets and what it could mean for your investments.

Federal Reserve's Interest Rate Strategy

The Federal Reserve (Fed) is taking a cautious approach to cutting interest rates.

In their November meeting, officials agreed on a 0.25% reduction, bringing the federal funds rate to a range of 4.5% to 4.75%.

This decision reflects the Fed's intent to support economic growth while keeping inflation in check.

Inflation Trends – PCE Price Index

The Personal Consumption Expenditures (PCE) price index, a key inflation gauge for the Fed, rose to 2.8% year-over-year in October, up from 2.7% in September.

This slight uptick suggests that while inflation has cooled from its peak, it remains above the Fed's 2% target, potentially influencing future interest rate decisions.

Employment Landscape

Unemployment claims have decreased, with 213,000 new applications filed last week, hovering near seven-month lows.

This indicates a resilient labor market, though the rise in continuing claims to 1.91 million suggests some workers face challenges finding new employment.

Markets are always evolving, and staying informed is half the battle.

While this week’s highlights focused on inflation and interest rates, the long-term game remains the same — strategic decision-making and discipline.

We'll return with our regular format in the next issue, so stay tuned for more insights to sharpen your trading edge!