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Last week, bullish market sentiment supported investors “buying the dip” throughout the week as buying pressures helped push the S&P 500 up 1.7%, despite dips throughout the week. Nvidia's earnings report showed strong results. However, the stock traded down for the second quarter in a row following a positive post-earnings release, possibly indicating high expectations are weighing on investor enthusiasm. The technology sector's performance was mixed, with semiconductors underperforming due to concerns about tighter export restrictions to China. Overall, optimism about potential positive impacts from the next administration’s policy changes and a strong U.S. dollar contributed are influencing market psychology and contributed to the market's upward momentum.

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Last week, the equity markets experienced a notable pullback after a strong post-election rally. Major indices like the S&P 500, Nasdaq, and Russell 2000 all posted significant losses, with the Russell 2000 down over 4%. This decline was driven by rising bond yields, which reached multi-month highs, and comments from Fed Chair Jerome Powell suggesting a more cautious approach to rate cuts. Additionally, there was a noticeable sector rotation as investors moved out of Information Technology and into more cyclical sectors like Financials, Industrials, and Energy. Despite the pullback, the overall market remains up for the year, supported by strong economic fundamentals and resilient consumer spending.

Last week, the equity markets experienced significant gains, with the S&P 500 posting its largest weekly gain of the year. This surge was largely driven by positive reactions to the U.S. election results, which were seen as favorable for corporate earnings. The Federal Reserve's decision to cut interest rates by 25 basis points also played a role, although the Fed maintained a cautious stance on inflation. Bond yields saw notable fluctuations, initially spiking mid-week before settling down. Overall, the markets were buoyed by strong economic data and investor sentiment, leading to record highs for the major indices.

Equity markets continued to slide for the second week, with the S&P 500 and NASDAQ posting weekly losses of over 1%, while the Dow's decline was fractional. The volatility was driven by concerns over the growth potential of technology stocks and artificial intelligence as well as increasing uncertainty in the outcome of Tuesday’s presidential election. Despite the volatility, earnings momentum remained positive, with third- quarter earnings for S&P 500 companies on track to rise by an average of 5.1%. On the bond market side, U.S. government bond yields continued to rise, marking the sixth increase in the past seven weeks with the yield on the 10-year note jumping 12 bps from the prior week to close at 4.37%.

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