Updated 12/24/18
A very tough week for stocks brought index values 9% below where they were at the beginning of the year. Select U.S. Index point changes for the week were: Dow (-1,655.14), S&P 500 (-183.37), and the Nasdaq (-577.67). The 10yr. treasury rate decreased -0.10 to 2.79%.
Last week:
Price declines for the week were the worst since 2008, after the Federal Reserve raised interest rates and also forecast two more increases for next year.
The off-and-on reports about whether the government would shutdown ended badly on Friday as a shutdown started with no immediate outlook for a quick resolution.
Housing data for November showed better than expected new construction activity and sales of existing homes.
After a small downward adjustment for consumer spending, third-quarter growth was revised slightly lower to a still very healthy +3.4%.
This week:
Developments regarding the outlook for China and U.S. trade relations will continue to be a "wild-card" for the future.
Some strategists will likely foresee the recent losses being recovered next year due to the forecast for continuing economic growth projected for 2019, still historically low interest rates, and a possible truce on further punitive trade actions with China.
The outlook for another interest rate increase will also likely be foreseen as being much more unlikely and dependent on a stock market recovery occurring during the first-half of next year.
Stock trading ends at 1pm on Monday Christmas Eve and bond trading ends at 2pm until Wednesday the 26th.
Stay Informed. Receive weekly updates of our outlook on the markets in your inbox.