COMMENTARY:
- The Grinch got ahold of the markets this week, the S&P500 was down 2% for the period.
The S&P500 recovered a bit on Friday after Wednesday’s drop driven by the Fed rate of 25 bps. Overall, this year the index has gained over 24%, and investors are hoping Santa brings a strong year-end rally to keep the YTD returns near the yearly highs. - Tech leadership, a key driver of December’s rally, showed signs of a pause (-1.3%). Super Micro Computer (-13.3%) and Micron Technology (-12.1%) contributed to the sector’s decline. In both cases, there seems to be collateral damage due to relationships with Nvidia, which is under a probe regarding semiconductor exports to China.
- Energy took the largest hit this week. The sector fell faster than Santa down the chimney (-5.7%). Phillips 66 (-10.1%) and Halliburton (-9.5%) were the biggest decliners, joining all the other 20 constituents in the “red zone.”
- As 2024 comes to a close look for updated reports on consumer confidence, new home sales, and initial jobless claims.
- The Market closes early at 1 pm on Christmas Eve and is closed for Christmas on Wednesday.
ETF TIDBITS:
Faith Investor Services released a new ETF, the FIS Bright Portfolios Focused Equity ETF (BRIF)
On Friday, Frontier Asset Management closed out the week by launching a suite of new actively managed ETFs. Frontier Asset Absolute Return ETF (FARX), Frontier Asset U.S. Large Cap Equity ETF (FLCE), Frontier Asset Core Bond ETF (FCBD), Frontier Asset Opportunistic Credit ETF (FOPC), Frontier Asset Total International Equity ETF (FINT).
The mutual fund industry is setting new records for ETF conversions in 2024. According to Morningstar, there have been 55 ETF conversions this year through Dec. 17, which compares to 35 last year and 20 in 2022.
