Stock Market Analysis for December 24, 2024

Market Overview

As we approach the end of 2024, key economic indicators and geopolitical events have influenced the stock market significantly. Last week saw a mixed performance with the S&P 500 gaining 0.5%, driven largely by tech stocks, while energy stocks faced declines due to lower oil prices.

Key Events Impacting the Market

• Federal Reserve Meeting: Last week, the Federal Reserve maintained interest rates, signaling a cautious approach amidst ongoing inflation concerns. This decision has left markets on edge as investors digest the implications for future economic growth.
• GDP Numbers: Recent GDP growth numbers showed a slight uptick, indicating resilience in consumer spending, albeit tempered by high interest rates.
• Geopolitical Tensions: Renewed tensions in Eastern Europe and ongoing trade discussions between the US and China have added uncertainty to the markets.

Key Indicators to Watch

• Inflation Data (CPI): To be released next week, any significant surprises here could sway market sentiment.
• Earnings Reports: Several major companies will report their earnings. Focus will be on tech giants and consumer discretionary firms to gauge overall economic health.
• Holiday Retail Sales: Investor attention will be on holiday season sales numbers which are expected to reflect consumer confidence.

Recommendations

• Buy: Consider adding SPDR S&P 500 ETF Trust (SPY) for broad market exposure. Additionally, tech stocks like Apple (AAPL) and Microsoft (MSFT) may offer growth potential given robust demand in the tech sector.
• Sell: Evaluate holding in energy ETFs or individual stocks like Exxon Mobil (XOM) as the outlook appears uncertain with current oil prices.

Closing Thoughts

Overall, the market remains volatile but poised for potential gains heading into 2025, contingent on economic indicators and geopolitical developments. Stay vigilant with a diversified portfolio and keep an eye on earnings reports next week.