Market Thoughts January 2025

Commonwealth CIO Brad McMillan recaps December’s market and economic news. The S&P 500 and Dow were both down in single digits for the month, while the technology-heavy Nasdaq eked out a modest gain. Developed and emerging markets showed small losses in December, and fixed income also had a weak end of the year. The central factor in these results was rising long-term interest rates, which hit valuations across the board. And although the Fed lowered interest rates in December, it indicated fewer planned interest rate cuts in 2025. What does this mean for the economy moving forward?