This Weekly Market Update reviews the top market headlines: Federal Reserve Support Could End Sooner, U.S. Job Growth Sputters in November, Business Surveys Highlight Continued Economic Expansion
  • The Federal Reserve Bank could consider accelerating the reduction of its $120 billion monthly asset purchases at its upcoming December meeting
  • The U.S. added 210,000 Jobs in November, the lowest monthly total this year
  • The ISM Manufacturing Index was at reported 61.1 in November, while the ISM Service Index was 69.1

Top Three Market Headlines

Federal Reserve Support Could End Sooner: Federal Reserve Bank Chairman Jerome Powell said last week that the central bank could consider accelerating the planned reduction of its monthly asset purchases as a result of lingering inflation concerns. The Chairman noted that the Central Bank had underestimated the supply-chain disruptions that have roiled the economy this year and contributed to higher inflation rates. While noting that he still expects inflation to decline next year, Mr. Powell suggested the Fed would be "retiring" its use of the term "transitory" to describe the nature of the current inflationary pressures.

U.S Job Growth Sputters in November: The U.S. Department of Labor announced last Friday that U.S. employers added only 210,000 jobs in November, the lowest monthly total so far this year. Increased employment in transportation and warehousing along with professional and business services drove November's hiring, while losses in retail sector jobs negatively influenced the monthly reading. Notwithstanding the limited number of job additions, labor force conditions continued to tighten, as the unemployment rate fell to a post-pandemic low of 4.2% and average hourly earnings rose at a pace of almost 5% over last year.

Business Surveys Highlight Continued Economic Expansion: U.S. economic activity continued to expand at a healthy clip in November, according to monthly surveys of business executives conducted by The Institute for Supply Management (ISM). The ISM Manufacturing Index rose to 61.1 in November, up modestly from 60.8 in October, while the ISM Services Index rose to a 24-year high of 69.1. (A reading above 50 indicates an expansion of activity, while a sub-50 mark reflects contraction.) Manufacturing sector respondents attributed growth to further positive outlook for new orders and expanding factory capacity, while Service sector respondents recognized increased growth from amplified consumer savings and rising wages.

 
As of December 6, 2021 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -1.24% 2.27% 13.64% 16.95%
S&P 500 -1.17% 5.63% 22.45% 25.55%
Russell 2000 -3.82% -1.88% 10.30% 17.96%
MSCI EAFE -0.94% -1.80% 6.40% 9.08%
MSCI Emerging Markets 0.19% -2.09% -3.31% 0.91%
FTSE NAREIT -0.32% 7.67% 32.59% 34.54%
Bloomberg Commodity -4.30% -4.92% 22.78% 29.39%
Barclays U.S. Aggregate 0.52% 0.60% -0.97% -0.60%

WSJ 11/30/2021, Bloomberg 12/1/2021, Bloomberg 12/3/2021. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your Gallagher Fiduciary Advisors consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.