Stocks were mixed this week as we saw gains in large caps (C-fund) while small caps (S-fund) fell slightly. The Dow Jones Industrial Average was up again Friday thanks to late buying in the last hour of trading to give the index its 11th consecutive day of gains. Utility stocks kept the S&P 500 in positive territory this week while financial stocks were underperforming as government bond yields dropped.
Talks of potential policies from the Trump administration, including tax cuts,
Stocks were up this week as the bulls were persuaded with strong economic data and faith in new upcoming tax policy to spark economic growth. Though we've been getting use to gains in stocks the past few months, this week we saw an acceleration in those gains. Traders following the momentum have been successful but others fear this relentless upside gives less support when the indices do finally decide to pull back.
All the TSP funds were up this week with the exception on the 0.01%
Stocks started weaker this week but were able to stay in a narrow trading channel for the first few days. Come Thursday and Friday, stocks produced back to back positive days in a row to give both the C and S-fund gains above 0.8% for the week. It seems remarks about upcoming changes in tax policies from Donald Trump catalyzed the buying. Traders have been waiting for the new market environment anticipated by the new Trump administration so a change in taxes for businesses could spark legitimate
Stocks fell early this week after Trump's immigration ban executive order was not taken well by most to say the least. Dip buyers showed up during the later half of Tuesday but couldn't continue the action into Wednesday. The Fed met this week but did not have much to say as they are likely waiting to see how Trump's presidency effects markets during his first few months before continuing to increase interest rates.
The early losses were reclaimed Friday when a good jobs report, among
With Trump in office and moving quickly on some of his campaign promises, stocks were up and some indices broke out of their extended trading channels. Headlines are the main catalysts for stocks but the momentum halted Thursday and Friday with no significant moves in stocks. The Dow finally hit the over talked about arbitrary 20,000 mark this week. Investing is a game of psychology though, so the attention on the Dow hitting this benchmark may create a mental support line in traders' heads.
S&P 500 (C fund)
||Dow Completion (S fund)
||EFA (I fund)
||Bonds (F fund)