Global Highlights This Week: Fed Leadership Transition Countdown Begins – U.S. Stocks on Track for Double-Digit Annual Gains

Last week, all three major U.S. indices rose over 1%, with the Dow and S&P 500 both setting new closing highs on Wednesday.

 

 

Dow Jones Index YTD +14.49%,S&P 500 Index YTD +17.82%,Nasdaq Composite Index YTD +22.18%.  

 

All three indices are on pace for a third consecutive year of double-digit percentage gains.

 

Murphy & Sylvest Wealth Management Senior Wealth Advisor and Market Strategist Paul Nolte said: “Momentum is clearly on the bulls’ side — the path of least resistance for stocks remains higher unless an exogenous event occurs.”

 

Analysts believe part of the year-end strength stems from the Fed’s rate cut earlier this month. Tuesday, the Fed will release minutes from that key meeting — investors are keenly focused on when further cuts might come.

 

Glenmede Vice President of Investment Strategy Michael Reynolds said the minutes could “help shed light on what discussions took place around the table” — markets are particularly interested in how many cuts to expect next year.

 

Investors are also awaiting President Trump’s nomination for the next Fed chair to succeed Jerome Powell, whose term ends in May next year. Any hints about Trump’s decision could influence markets in the coming week.

 

Treasury Secretary Bessent said he guesses the nominee will be announced in early January. Earlier last week, Trump said he wants the next Fed chair to lower rates when markets perform well.

 

 

Current “finalists” are White House NEC Director Kevin Hassett, former Fed Governor Kevin Warsh, and Fed Governor Christopher Waller (nominated during Trump’s first term).

 

Beyond stocks, commodities dominated headlines last week — gold, silver, copper, platinum all set new records. Spot silver surged over 10% in a single day and nearly 18% for the week, while crude oil remained weak.

 

Analysts note persistent crude oversupply. If Russia-Ukraine talks progress or U.S.-Venezuela tensions ease (relaxing export restrictions), this risk would be particularly pronounced.

 

Earlier, Ukrainian President Zelenskyy said he plans to meet Trump on the 28th in Florida to discuss security guarantees for Ukraine and some “sensitive” issues.

This Week’s Key Economic Events Overview  

Monday (Dec 29): BOJ releases December monetary policy meeting summary of opinions; U.S. EIA crude inventories to Dec 19; U.S. December Dallas Fed business activity index  

 

Tuesday (Dec 30): U.S. October FHFA house price index MoM; U.S. December Chicago PMI  

 

Wednesday (Dec 31): Fed releases monetary policy meeting minutes; U.S. Baker Hughes oil rig count to Jan 2; U.S. API crude inventories to Dec 26; U.S. initial jobless claims to Dec 27; U.S. EIA crude inventories to Dec 26  

 

Thursday (Jan 1): U.S. EIA natural gas inventories to Dec 26  

 

Friday (Jan 2): Eurozone December manufacturing PMI final; U.S. December S&P Global manufacturing PMI final  

 

Saturday (Jan 3): Philadelphia Fed President Harker speaks