Stock Market News is upon us and for many investors the page is flipped to a clean slate. That doesn’t mean, however, that there is a clear path forward. While there is always the possibility that inflows and portfolio shifts could spark a rotation, the overall macro backdrop is likely to remain the same.
That’s especially true today as investors await more detail on a second-term policy agenda from Washington. With little economic data other than November factory orders and the finalized December services PMI, the focus will be on a divided Congress and how it can coalesce around a pro-growth agenda.
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The major indexes clawed higher early as the dollar stepped back and yield pressure eased. But, as has been the case over the past week, every rally quickly ran into selling pressure.
As the second-half of 2024 begins, investors should expect the pace of equities gains to slow. In addition to lower earnings expectations, higher valuations leave less room for error and uncertainty about a second-term policy agenda could trigger bouts of volatility.
