In this week’s Economic & Market Report, winter has come early this year.

Early Market Weakness in December
❄️ The U.S. stock market posted a rare December decline, marking only the fifth negative performance for the month since 2000.
❄️ Stocks faced a long-overdue pullback after a linear climb since late 2023.
❄️ U.S. Treasury yields surged over the past four months, driven by persistent inflation concerns.

Uncertainty in Market Recovery
☃️ Despite Wednesday’s strong market response, key resistance levels in equities remain unbroken, leaving recovery uncertain.
☃️ Sustained declines in Treasury yields are needed to improve equity risk premiums.
☃️ Inflation risks linger due to seasonal data noise, rebuilding efforts from Los Angeles fire damage, and elevated 5-year breakeven rates above 2.50%.

2024 Stock Market Review video with Chief Market Strategist Eric Parnell.

The New Year is officially underway. Following an exceptional 2024 for stocks that ended with an oof and included a surprise election sweep along with lingering inflation concerns that just won’t quit as evidenced by the uneven year for bonds, what are the key indicators to watch for what to expect as we move freshly into 2025. The following are five indicators to watch for 2025.