Weekly Update: Why the Bulls Could Run Wild in 2025

We got some data this week that may help the Fed stay on track for a December rate cut…

On Wednesday this week, the Consumer Price Index (CPI) print for October was released showing that prices increased 2.6% over the previous year.

This number was slightly higher than the 2.4% increase we saw in September, but it was still on target for what many economists were expecting.

Then on Thursday, a report from the Labor Department came out that showed that the number of people filing new unemployment applications fell for the week ending November 9th.

This is somewhat of a relief after unemployment claims surged in October due to Hurricanes Helene and Milton and the factory workers’ strike at Boeing.

So economists are hopeful that job growth will continue to regain steam as we continue through the rest of November.

With labor market conditions easing and inflation coming in on track with expectations, this gives the Fed more incentive to cut interest rates again at their meeting on December 18th.

We’ll get more data on inflation and employment before that meeting so we’ll see how those numbers shake out, but as of now, rates look like they’re still coming down which is good for businesses that need to borrow capital to continue growing.

Not only that but with Trump winning the election we’re about to move into a season where we’ll likely see less regulation, less taxation, and more pro-business policies.

So businesses are about to grow and flourish, sending the prices of stocks shooting higher.

Now we also have to keep in mind that we may see higher tariffs, which could potentially be inflationary, so we have to think about that too when it comes to what the Fed will do as we move into 2025.

But all in all, I think we’re in a very good place when it comes to potential business innovation and growth.

And the market seems to know this too as we’re currently sitting at all-time highs on the S&P 500.

So the market outlook looks bright as we approach the end of the year, which means we’ll have plenty of opportunities to add innovative companies to our portfolio.