A benign December inflation report was all it took to ignite another strong rally on Wall Street, with major indices delivering their best weekly performance since the postelection surge in early November.
Heading into the week, markets were gripped by concerns over inflation and interest rates, pricing in just one interest rate cut by year-end while the 30-year Treasury yield hovered around 5%.
Fresh data showed inflation rising for the third straight month up to 2.9%, yet right in line with forecasts. A softer core reading — excluding food and energy — gave traders hope the Fed might cut rates at least twice this year.
Adding fuel to the bull run, major banks kicked off the fourth-quarter earnings season with blowout results.
More:Strong jobs report gives market investors the jitters
Financial stocks jumped 6% for the week, their best rally since October 2023. Goldman Sachs led the charge among big players, surging 11% to hit record highs.
In commodities, oil briefly touched $80 per barrel before retreating after the approval of a ceasefire deal in Gaza between Israel and Hamas.
In cryptocurrency markets, Bitcoin continues to defy gravity, surpassing $100,000, fueled by optimism over crypto-friendly policies under the incoming Donald Trump administration.
Trump will be inaugurated as the 47th U.S. president on Monday. Markets are closed Monday for the Martin Luther King Jr. Day federal holiday.
TikTok ban moves closer to reality
The U.S. Supreme Court upheld a law forcing ByteDance to sell the TikTok app by Sunday over national security concerns. Under the Supreme Court’s ruling, a ban of would force Google and Apple to stop offering the TikTok app in its mobile app stores to American users or face fines. Trump could attempt to roll back the ban after taking office.
Trump nominee reveals economic visions
Scott Bessent, Trump’s Treasury secretary nominee, laid out his economic agenda before the Senate, emphasizing tax cuts, deregulation, energy expansion and tougher trade policies — particularly targeting China, Russia and Iran.
A Bitcoin reserve?
Reports suggest Trump is open to the idea of a U.S. strategic Bitcoin reserve, a move that could reshape fiscal policy and spark industrywide debate.
Electric vehicle sales rise
Ford and General Motors reported a sharp rise in electric vehicle sales, hitting 1.3 million vehicles, with the Mustang Mach-E and Cadillac Lyriq emerging as top sellers in 2024.
More:Rivian electric van highlights unique features as it reaches for more customers
Benzinga is a financial news and data company headquartered in Detroit.
