What happened this weeK

Market futures are slightly higher this morning as we enter the final two weeks of the year. Investors and economists alike are hoping for a boom in retail spending for the holidays despite constant inflation and recession fears. Last week the Federal Reserve announced another 50 basis point rate hike and continued to signal higher-for-longer rates. Recession fears grew because the central bank reconfirmed its forecast for future hikes above previous expectations, saying that it now expects to hike rates to 5.1%. Economists are now speculating and managing expectations for the new year expressing that the market volatility experienced in 2022 will continue into the new year.

Here is a recap of where major indices stand as we enter the final weeks of 2022:

Dow Jones Industrial Average:

• Down 4.83% for December

• 10.91% off its record high

• Down 9.41% for the year

S&P 500

• Down 5.58% this month

• Sits 20.05% off its record highs

• Down 19.17% for 2022

Nasdaq Composite:

• Down 6.65% this month

• 32.68% off its highs

• Down 31.57% for the year

  (Cite: cnbc.com)

In other news, Elon Musk polled himself as CEO of Twitter and a surprising major of Twitter users voted for him to step down as CEO, this comes after a tumultuous two months after acquisition in which Musk has made some unpopular layoffs and reinstating previous closed account, like former President Donald Trump. 

Looking ahead to this week:

Tues Dec 20th: Building Permits and Housing Starts.

Wed Dec 21st: Consumer Confidence

Thurs Dec 22nd: Real GDP Revision and Jobless Claims

Fri Dec 23rd: PCE Index, Durable goods, UMich 5 yr Inflation expectations. 

Wishing you all a very Merry Christmas and Happy New Year!