Market Performance; December 19th

Market Performance; December 19th

The S&P 500 and Nasdaq Composite fell by 0.1%, closing at 5,867.1 and 19,372.8, respectively.

The Dow Jones Industrial Average slightly rose to 42,342.2, ending a 10-day losing streak.

Sector performance:

Real estate experienced the steepest decline.

Utilities led gains.

Economic Updates

1. U.S. third-quarter GDP growth:

Revised up to a 3.1% annual rate from the previous estimate of 2.8%.

2. Surpassed Bloomberg's consensus expectations of no change.

3. Analysts at Stifel noted that the stronger GDP supports the Federal Reserve's view of a "solid" economy.

4. Implications for interest rates:

Indications of a policy pause in rate cuts as the economy enters 2025.

Federal Reserve Announcement 

1. The Federal Open Market Committee (FOMC) reduced interest rates by 25 basis points.

2. Fewer rate cuts are projected moving forward.

3. Fed Chair Jerome Powell emphasized caution in future rate decisions, suggesting the current policy is less restrictive.

Real Estate and Manufacturing Updates

1. U.S. existing home sales:

Rose more than expected in the last month.

Showed the highest year-over-year increase since June 2021.

2. Manufacturing activity:

Declined in both the U.S. Mid-Atlantic and Midwest regions.