Equities ended higher last week with the S&P 500 notching its 53rd all-time high of the year. The S&P 500 finished 1.1% higher while small- and mid-caps were up 1.1% and 0.8%, respectively.
Yields fell sharply on the week with the 10- and 2-year U.S. Treasury yields falling nearly in unison. The 10-year ended the holiday-shortened week at 4.17% and the 2-year at 4.15%.
The Core Personal Consumption Expenditures (PCE) price index rose 2.8% from a year ago in October, which was in line with consensus expectations but still above the Federal Reserve’s (Fed) long term target level of 2.0%.
A look ahead
A consequential jobs report is scheduled for late in the week. Consensus expectations are for the unemployment rate to tick higher in November but also for total nonfarm payrolls to recover from a soft October reading.
In addition to the jobs report, the Fed Beige Book release and various Fed President speaking engagements should help investors calibrate expectations for the trajectory of rate cuts.
