The S&P 500 Index registered its fourth consecutive weekly gain as the November Treasury bond rally lifted the biggest overhang for risk markets.1 Investment-grade corporate bond spreads also benefited with credit spreads moving to their tightest levels since the beginning of the Federal Reserve (Fed) tightening cycle. Financial markets are becoming more confident the Fed has completed its tightening cycle without inflicting significant damage to the economy.
Home buyers also experienced a reprieve this month from higher mortgage rates with the average 30-year mortgage falling to 7.29% last week — down 50 basis points since late October.2 The week’s economic calendar will give investors more data on the impact of rising borrowing costs on the housing market. New home sales will be released Monday, the Federal Housing Finance Agency (FHFA) U.S. House Price Index on Tuesday and Pending home sales on Thursday.3,4
Other key economic releases this week include the Fed’s preferred inflation gauge — Personal Consumption Expenditures (PCE) — on Thursday and Friday’s U.S. manufacturing conditions from S&P Global and the Institute for Supply Management (ISM).
Sources:
1BNN Bloomberg – Markets today: 'fear gauge' hits 2020 low as stocks up this week; 11/24/23
2The Mortgage Reports – Will Rates Go Down in December 2023?; 11/22/23
3MarketWatch – U.S. Economic Calendar; as of 11/27/23
4Federal Housing Finance Agency – House Price Index; as of 11/27/23
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