The S&P 500 index slipped 0.6% last week for its first weekly drop since mid-November. While last week snapped a three-week winning streak, the S&P 500 is still solidly in positive territory for 2024 with a year-to-date climb of 27%.
Data last week showed the US consumer price index increased 0.3% in November, ticking up from 0.2% in each of the previous four months. Annually, inflation accelerated to 2.7% from October’s 2.6% pace. However, both measures were in line with forecasts in a Bloomberg-compiled survey.
November’s producer prices, meanwhile, rose more than expected as wholesale costs of goods climbed amid a jump in the food component. The US producer price index increased 0.4% month over month on a seasonally adjusted basis in November, versus a consensus estimate for a 0.2% increase. Year over year, producer prices were up 3% in November, outpacing the 2.6% gain analysts were expecting.
Investors are keeping a close eye on the inflation measures as the Federal Reserve’s Federal Open Market Committee is set to hold its final rate-setting meeting of the year this week.
The materials sector had the largest percentage drop across the S&P 500’s sectors, shedding 2.9% on a weekly basis, followed by a 2.7% decline in utilities and a 2.4% loss in real estate.
Still, communication services rose 2.4% and consumer discretionary edged up 1.4%.
The FOMC meeting will be a main focus this week. Also, economic reports will include the second revision to Q3 gross domestic product. November US retail sales, housing starts and building permits will also be released, among other data.
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