The week ending December 13, 2024.

Last week, stocks and bonds dropped after the Producer Price Index (PPI) came in higher than expected. This caused investors to rethink the chances of Federal Reserve interest rate cuts, leading to a broad sell-off in stocks. Bond yields climbed as investors prepared for interest rates to stay high or even increase.

DOMESTIC EQUITY STYLE BOXES

This week, U.S. stocks saw mostly negative results. Among large-cap stocks, growth stocks rose slightly by 0.36%, while large-value stocks fell nearly 2%. Mid-cap and small-cap stocks also struggled, with losses between 1.3% and 2%. Small growth stocks performed the worst, dropping nearly 2%.

Domestic Sectors

Most sectors were down last week. Materials, utilities, and healthcare saw the largest declines, all falling over 2%. Energy, financials, and industrials also dropped significantly. However, consumer discretionary stocks stood out with a gain of 1.16%, showing some strength.

Bonds

Bond markets followed a similar pattern, ending the week lower. The U.S. Aggregate Bond Index fell by 1.42%, while high-yield and international corporate bonds also posted losses.

International Stocks

International stocks were mostly down as well. European and Pacific stocks declined by about 1.3% to 1.9%. On the other hand, Latin American stocks managed to climb 0.48%, showing some resilience.

Alternative Assets

Alternative assets had a strong week. Gold edged up 0.55%, the U.S. dollar gained 1.10%, and broad commodities surged 3.16%, making them the top performers of the week. Bitcoin broke through the $100,000 mark, fueled by positive ETF flows.