SPX: S&P 500 Futures Edge Higher After Longest Weekly Winning Streak in Six Years

Seven positive weeks in a row is what investor optimism is doing to the S&P 500. How long will the market euphoria last?

• The S&P 500 SPX notched its seventh straight week of gains for the first time in six years. The blue-chip average was poised to open higher today with futures pointing to a kickstart north of 0.2%. Flying higher and higher is the predominant market mood as investors and the Fed are finally moving in sync. In this (festive) light, the Dow Jones notched its third straight record close.
• What if inflation was indeed transitory as Fed Chief Jay Powell said back in 2021? The interest rate austerity diet is so far panning out nicely. Inflation has dropped from a 41-year peak of 9.1% in June 2022 to 3.1% in November. In other words, prices are still increasing, not decreasing. But why spoil the mood?
• The Fed clearly signaled last week that it is preparing to cut rates three times next year. And everyone liked that. And clapped. And they’re still liking and clapping. It ought to be said that money managers tend to retreat from frothy markets fairly quickly, especially if a couple of unfortunate big-shot reports pile in, like inflation rearing back up or a scorching job market print.