PUT IN WORK (11/18/2024)

The stock market had a rough week, but that's not necessarily bad! Indices dropped across the board last week, with the Nasdaq (QQQ) and S&P 500 (SPY) lowering exponentially throughout. The former saw a loss of 3.4%, and the latter dropped an equally heavy 2.1%, with the majority of these losses incurred on Friday. On the flip side, both indices also reached all-time highs on Monday.

Ultimately, this was to be expected. Last week, we mentioned how the stock market couldn't keep this pace for much longer, setting new highs weekly for quite some time now. With the result of the presidential election skyrocketing stocks to yet another all-time high at a volatile pace, it was about time for some sizeable pullback—which is precisely what we got. Adding onto the market's heavy downward movement was Jerome Powell, who—on Thursday—suggested that December rate cuts aren't guaranteed. This particular language is nothing new. More than likely, it's yet another intentional use of hawkish and uncertain remarks to keep investors at bay, keeping the market from heating up too much.

Although most analysts still forecast rate cuts for December, January, and March, the general belief is that a strong November employment or inflation report could keep the Fed from cutting rates at the next meeting, which takes place on December 17th and 18th. Now, it's a waiting game as investors stop and look at the nation's future. The rally could kick back into gear, but before we see any long-term permanent gains, we'll first need to see what direction our economy and our presidency are headed. Until then, earnings are still in effect, with companies such as Symbiotic (SYM), Walmart (WMT), Lowes (LOW), Nvidia (NVDA), and Target (TGT) all reporting this week.

(Nasdaq ETF (QQQ) price from November 2023 - 2024 — each candle is 1 week. Chart provided by tradingview.com.)

PORTFOLIO UPDATE

Nearly all of our stocks fell along with the market, with most of our portfolio taking a reasonably hefty hit. However, one stock continued to climb throughout the week: Rocket Lab (RKLB). Rocket Lab's most recent earnings report shocked investors, pushing it to heights the company hasn't seen since September of 2021. We plan to hold all currently owned stocks for the foreseeable future. As always, thank you for reading, and happy investing.