The S&P 500 has closed at record highs in the last 10 of 12 trading days, including the current streak of seven in a row with Friday's close at 4697. So, what drove the markets this week? On Wednesday, the Federal Reserve made the long-awaited announcement that the central bank will slow the monthly bond purchases that were implemented during the pandemic. There will be a $15 billion reduction a month until mid-next year, but that amount could be altered based on the economic outlook. The Fed also announced there is no rush to raise interest rates until after the bond tapering is finished. On Friday, the October jobs report came in better than expected with a total of 531,000 jobs added, which was above the 450,000 estimated. Also, earnings season continues with strong numbers being reported across the board. Next week we get the CPI and PPI numbers along with consumer sentiment so that will influence the market. From a technical perspective, last week we mentioned that in the last two months of 2020, the S&P 500 posted 11 record highs and gained just shy of 15%. Weve made good progress towards that thus far and will continue to Let the trend be our friend. For TSP TIPS the C and S funds stood out. Mimicking the S&P 500, the C fund also hit new record highs every day this week, and seven in a row. The S fund alternated days and hit new highs on Monday, Wednesday and Friday. With their Performance Rankings almost equal, our current allocation remains solid.
The S&P 500 has closed at record highs in the last 10 of 12 trading days, including the current streak of seven in a row with Friday's close at 4697. So, what drove the markets this week? On Wednesday, the Federal Reserve made the long-awaited announcement that the central bank will slow the monthly bond purchases that were implemented during the pandemic. There will be a $15 billion reduction a month until mid-next year, but that amount could be altered based on the economic outlook. The Fed also announced there is no rush to raise interest rates until after the bond tapering is finished. On Friday, the October jobs report came in better than expected with a total of 531,000 jobs added, which was above the 450,000 estimated. Also, earnings season continues with strong numbers being reported across the board. Next week we get the CPI and PPI numbers along with consumer sentiment so that will influence the market. From a technical perspective, last week we mentioned that in the last two months of 2020, the S&P 500 posted 11 record highs and gained just shy of 15%. Weve made good progress towards that thus far and will continue to Let the trend be our friend. For TSP TIPS the C and S funds stood out. Mimicking the S&P 500, the C fund also hit new record highs every day this week, and seven in a row. The S fund alternated days and hit new highs on Monday, Wednesday and Friday. With their Performance Rankings almost equal, our current allocation remains solid.