Weekly Economic Update: December 13th, 2021

Presented by Nicholas Wealth Management

December 13th, 2021

 

Weekly Market Update

In this week’s recap: Milder Omicron news boosts stocks.

 

The Week on Wall Street

A more benign reassessment of the possible economic risk posed by Omicron sent stocks sharply higher last week.

The Dow Jones Industrial Average picked up 4.02%, while the Standard & Poor’s 500 advanced 3.82%. The Nasdaq Composite Index gained 3.61% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 2.74%.1,2,3

 

Assessing Omicron

Though much is still unknown about the Omicron variant, reports of potentially milder health effects and the efficacy of booster shots ignited optimism that its economic impact would be less severe than originally feared.

Stocks rallied higher each of the first three days, with strong gains in many of the reopening stocks, such as airlines, travel and leisure, financials, and energy. The performance of high-valuation growth companies was a bit more erratic as they rose and fell sharply throughout much of the week. Weakening Thursday, stocks turned higher on Friday despite a hot inflation number, pushing the S&P 500 to a new record high.4

 

Inflation Factor

November’s Consumer Price Index (CPI) came in at a nearly 40-year high, rising 0.8% from the previous month and 6.8% from a year ago. It is the 6th-consecutive month that inflation has exceeded 5%. Core inflation (excluding the more volatile food and energy prices) came in lower, but still posted its sharpest jump since 1991.5

Economists have attributed this elevated inflation rate to strong consumer demand, a shortage of goods due to supply chain constraints, and strong wage growth. How long this high level of inflation persists is unknown, but the Fed has begun considering policy steps to manage it.

 

Tip of the Week

Update your will. It is just as important as having one. If you drafted a will years ago, the information is likely in need of some adjustments. Be sure to revisit your will often and keep it up to date.

 

Radio

Listen below for a preview of this past weekend’s Retire Ready show on 95.5 FM WSB at 7 pm as David Nicholas invited Nicholas Wealth’s Financial Advisor, Aaron Gaines, and intern, Bennett King, to hear their stock pick for a stocking stuffer this Christmas.

Retire Ready with David Nicholas
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Prev 1 of 1 Next

 

Media

This Christmas could be a Crypto Christmas. Bitcoin mining company Riot Blockchain currently has 3 times the capacity as their next competitor. Watch David Nicholas on Fox Business with Stuart Varney on why RIOT could be a great stocking stuffer this holiday.

Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!

 

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CITATIONS:

1. The Wall Street Journal, December 10, 2021

2. The Wall Street Journal, December 10, 2021

3. The Wall Street Journal, December 10, 2021

4. CNBC, December 10, 2021

5. The Wall Street Journal, December 10, 2021

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