19. Weekly Market Recap: Key Movements & Insights

🎅 Will Santa Show Up? Stocks Face Headwinds Before Christmas

Stocks Struggle Amid Inflation Concerns and Tech Weakness

In a volatile market week, the S&P 500 dropped 2.2%, deepening its losses as investors grappled with inflation concerns, Federal Reserve policy signals, and mixed economic data. The index's year-to-date performance remains strong at 25.0%, but the recent choppiness underscores the market's sensitivity to economic developments and central bank decisions.

The week's losses were driven by Federal Reserve Chair Jerome Powell's comments during the FOMC announcement, which suggested fewer interest rate cuts in 2025 than anticipated. This triggered a sharp selloff on Wednesday, with the S&P 500 plunging nearly 3% and sustaining losses into the end of the week. Treasury yields spiked in response, reflecting heightened uncertainty about the Fed's future policy path.

Despite the bearish sentiment, markets recovered on Friday, buoyed by slightly better-than-expected inflation data. However, concerns about a potential government shutdown and …