Weekly Financial Market Update - January 11, 2019
January 14, 2019
The January effect, whereby stocks rally in the first weeks of the year following tax loss selling in December, may have materialized in recent days given the S&P 500’s five-day winning streak beginning January 4. Since the worst Christmas Eve performance in its history, the S&P 500 has returned gains slightly higher than 10% through today’s close, with a year-to-date gain of 3.6%. The technology-heavy Nasdaq and the Dow Jones Industrial Average have also followed suit with year-to-date returns of 5.1% and 2.9%, respectively. The gains we have seen so far this year for the major indexes have also been driven by recent positive news coming from the U.S.- China trade talks and a more dovish tone from Federal Reserve policymakers.
For more information including comments about an unclear policy path at the Federal Reserve and U.S. consumer prices in our Weekly Financial Market Update.