WILLIAM RIEGEL, HEAD OF EQUITY INVESTMENTS
December 23, 2014
Equity and fixed-income markets
Equity markets began the week of December 22 on a positive note. Amid seasonally light trading, the S&P 500 Index closed at another record high, as investors appeared to be positioning for a so-called "Santa rally" — a rise in stock prices that is often observed in the week between Christmas and New Year's. European and Japanese markets also got off to a good start but remained in negative territory for the month-to-date in U.S. dollar terms. The euro and yen weakened against the dollar.
In fixed-income markets, the yield on the bellwether 10-year U.S. Treasury continued its modest rise from the previous week. Since the beginning of 2014 through December 22, the 10-year and 30-year yields have fallen by 83 basis points and 117 basis points, respectively, while most short-to-intermediate-term yields have risen modestly, resulting in a flattening of the yield curve.
Current market updates are available here.
A powerful GDP report dominates U.S. economic releases
A number of U.S. economic reports were released in the days leading up to Christmas.
Meanwhile, inflation fell 0.2% in November, as energy prices dropped.
For our views on economic growth prospects in 2015, watch this video with TIAA Chief Economist Tim Hopper.
Another abbreviated edition of Weekly Market Update will be produced before year-end, with our normal publishing schedule set to resume on Friday, January 9.
TIAA-CREF Asset Management provides investment advice and portfolio management services to the TIAA-CREF group of companies through the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Management, LLC, and Teachers Insurance and Annuity Association® (TIAA®). Teachers Advisors, Inc. is a registered investment advisor and wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). Past performance is no guarantee of future results.
Foreign stock market returns are stated in U.S. dollars unless noted otherwise.
Please note that equity and fixed income investing involve risk.