U.S. equity markets notched a third consecutive week of gains last week pushed forward by rising expectations for another interest rate cut by the Federal Reserve at its final monetary policy committee meeting of the year later this month. For the week, the S&P 500 broke above 6,100 with a 1.0% gain while the tech-heavy Nasdaq surged 3.3% and the Dow Jones slipped -0.6%. Market participants continued to show strong risk appetite into year-end as Bitcoin surpassed the $100K level for the first time on record, and U.S. equity inflows climbed further after hitting a record monthly net inflow in November.

The U.S. nonfarm payrolls report for November showed job growth bounced back last month with additions of 227k—a figure that comfortably beat the consensus—and the prior two months’ readings were revised higher by 56k. However, the unemployment rate unexpectedly ticked up to 4.2% from 4.1%. Last week's November payroll was a Goldilocks number for those hoping for a December rate cut: solid, but not enough to derail the Fed's easing path. The odds of a quarter-point cut rose to 86%. The reading showed that the labor market remains resilient but is cooling, and it sets up the Fed for another rate cut.

One of the most notable events this week was the tragic shooting of the top boss of UnitedHealth’s insurance business. Brian Thompson was shot and killed Wednesday morning outside a midtown Manhattan hotel where he was scheduled to speak at the company's annual investor conference. The suspected shooter, Luigi Mangione, was arrested yesterday in Altoona, Pa., and was found with a gun and a silencer like those believed to have been used in the shooting of Brian Thompson, as well as a manifesto condemning the health care industry, officials said.

The sudden toppling this weekend of President Bashar al-Assad, the longtime dictator of Syria, after a brutal 13-year civil war surprised many observers. But the swift capitulation was partly because the conflict had decimated the economy. One consequence: The government was unable to pay salaries of its soldiers, and many simply chose to give up the fight. Between 2011 and 2019, their economy shrunk by roughly two-thirds. That was followed by the pandemic, a global surge in inflation and a 2023 earthquake. The World Bank estimated this year that the poverty rate was nearing 70 percent. Syria isn’t a major oil exporter compared to other Middle Eastern states, but the industry is a big part of its economy and has been pummeled by sanctions.

Overseas, China has signaled even bolder stimulus plans for next year as Chinese officials seek to revive their economy from an extended slump ahead of new trade battles with the U.S. government. Chinese officials yesterday morning pledged to adopt a “moderately loose” stance for the first time since 2010 and added that they would increase fiscal spending next year to boost the nation’s economy. The comments come ahead of a crucial meeting this week to set Beijing’s economic priorities for 2025.

In the week ahead, the Fed pendulum swings back to the inflation part of the mandate. The November consumer price index hits this Wednesday, just a week before the FOMC's final 2024 meeting. Economists expect that core CPI, which excludes food and energy, rose 0.3% last month with the annual inflation rate holding steady at 3.3% year-over-year. The Producer Price index, which will be released on Thursday, is expected to continue to tick higher with Core PPI also forecast at 3.3% year-over-year, compared to 3.1% in October.