Mid-Week Market Minute 11.29.23

Stocks Unchanged This Week; PCE Report on Thursday

Stocks were mostly unchanged in early trading this week as investors look to close the door on an impressive November. As of Tuesday, global stocks were on pace to finish November markedly higher, led by international developed stocks which have rallied more than 9% this month. It’s been a welcomed month for bond investors as well, as both taxable and municipal bonds are set to finish November higher by more than 4% against the backdrop of falling interest rates.

With a relatively strong third-quarter earnings season behind us, investors once again will shift their attention to the Federal Reserve and monetary policy. On Thursday of this week, market participants will get a look at the PCE inflation report. Headline prices are expected to have risen 3% on an annual basis, lower than last month’s reading of 3.4%. Core prices are expected to decline as well, with economists forecasting Core PCE to come in at 3.5%, lower than the prior reading of 3.7%. With just one FOMC meeting remaining this year, markets are betting the central bank is finished with interest-rate hikes. Despite relatively weak Treasury auctions this week, interest rates continued to decline with the yield on the 2-year and 10-year Treasury notes trading around 4.67% and 4.32%, respectively, mid-week.

Source: GSAM, CNBC, JPMorgan

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