Schwab Market Update Audio

Yesterday's rally followed an in-line CPI that raised hopes for a rate cut next week. Today, the ECB is expected to cut rates, and U.S. PPI will provide a look at wholesale prices.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

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Today's CPI data looms, and hot results could lower odds of rate cuts in early 2025. Still, it would take a very bad report to squash widespread hopes of a cut next week.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

(0131-1224)

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Investors have their eyes on Treasury yields following Monday's losses fueled partly by a yield rally. Rates could stay in focus ahead of Treasury auctions and CPI later this week.

Here is Schwab's early look at the markets for Tuesday, December 10th: 

Major indexes begin the day licking their wounds and watching the bond market after moderate losses Monday to start a week dominated by U.S. inflation data and central bank meetings. Stocks finished near their lows yesterday, potentially putting the market in a weak spot on the charts as Tuesday dawns.

Treasury yields rose across much of the curve Monday amid worries about tomorrow's Consumer Price Index (CPI) data and reaffirmation by President-elect Trump that he stands by his tariff and deportation policies, which the market see as inflationary. 

Adding to pressure on bonds, which move the opposite direction of yields, was The New York Federal Reserve's November consumer inflation expectations for the year ahead climbing to 3% from 2.9% in October. That followed year-ahead inflation expectations jumping to 2.9% from 2.6% in Friday's University of Michigan's preliminary December consumer sentiment report, the highest in six months.

"CPI & PPI loom large this week, and markets will be fixated on this inflation data," said Joe Mazzola, head trading and derivatives strategist at Schwab.

Besides CPI, tomorrow brings a rate decision from the Bank of Canada followed by Thursday's expected rate cut by the European Central Bank (ECB). The CPI data and Thursday's Producer Price Index (PPI) could have a large impact on the U.S. rate outlook, but the Fed is seen almost certainly lowering rates when it gathers next week. 

Tech stumbled to start the week after driving last week's rally to record highs. The softness surfaced after China announced an anti-trust investigation into Nvidia (NVDA), which weighed on Nvidia and most other semiconductor stocks. Tech may find itself under more pressure today after Oracle (ORCL) disappointed late Monday with earnings that missed analysts' average estimate. Revenue came in as expected, dominated by AI-driven cloud performance, but shares fell 7% in pre-market trading.

While Nvidia and semiconductors weighed on tech yesterday thanks partly to Beijing, not all the China news was bearish. China's Politburo shifted to looser monetary policy and promised more stimulus. This gave U.S.-listed Chinese stocks a boost and appeared to help U.S. gold mining and European luxury goods makers that might benefit from increased Chinese demand. Apple (AAPL), with a large presence in the Chinese market, registered a new all-time high Monday. 

As of late Monday, traders saw an 86% chance rates will fall 25 basis points at the conclusion of the Federal Open Market Committee (FOMC) meeting December 17–18 and a 14% chance of no move, based on the CME FedWatch Tool. 

It's unlikely the Fed would want to rock the boat by pausing next week with the market primed for a cut. But the central bank might deliver a so-called "hawkish trim," meaning it could lower rates and also express caution in its updated projections and Fed Chairman Jerome Powell's press conference. 

Heading into Tuesday, the question is whether Wall Street sees any "buy the dip" action after Monday's washout. The worst performing S&P 500 sector yesterday was mega-cap dominated communication services, while only the defensive health care sector made any gains.

The

 S&P 500® index 

(SPX) fell 37.42 points (0.61%) Monday to 6,052.85; the

 Dow Jones Industrial Average®

($DJI) slipped 240.59 points (0.54%) to 44,401.93; and the

 Nasdaq Composite®

($COMP) fell 123.08 points (0.62%) to 19,736.69.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

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The days ahead also include bank meetings overseas, along with a new set of earnings from the tech sector. 

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

(0131-1224)

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Two major indexes climbed, and the S&P 500 posted new record highs after the jobs report raised rate cut hopes. Tech led, but most sectors fell. The SPX is up three straight weeks.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Major indexes lost ground ahead of tomorrow morning's monthly jobs report. Consumer discretionary stocks led on airline strength, info tech sagged, and bitcoin surged.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Earnings from Salesforce and Marvell Technology showed strong AI demand, helping tech, though some sectors got left behind. Powell seems in no hurry to cut rates, but yields fell.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Though several mega caps sparked a Nasdaq gain, most of the market was flat to lower in a session that lacked direction awaiting Powell's remarks tomorrow and jobs data Friday.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Mega-cap strength and hopes for a rate cut this month helped two major indexes post fresh highs today, but decliners led advancers. Data was firm, but Treasury yields stayed in check.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

During an abbreviated session that was light on U.S. news, stocks ended November with gains. Next week brings another set of data, including key labor market reports.

Important Disclosures

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Investing involves risk, including loss of principal.

Past performance is no guarantee of future results.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.