A Week in Review
Following their usual seasonal trend, U.S. small-cap stocks have been the star performers this November. The Russell 2000 index, a benchmark for small-cap equities, has seen an impressive 8% rise this month, setting the stage for a strong December. This aligns with the historical trend of small caps excelling in the final two months of the year, often leading to the so-called "Santa Rally."
President-elect Donald Trump's appointed DOGE (Department of Government Efficiency) could potentially save $50–100 billion annually, according to Congressional Budget Office analyses. However, experts suggest that the scale of potential savings is expected to be modest compared to total federal outlays of approximately $6.7 trillion in 2024.
ARK Invest CEO Cathie Wood has raised concerns about the state of auto loans in America, noting that 90-day delinquency rates have now surpassed levels seen during the 2009 financial crisis. This comes despite continued investor confidence in auto-backed securities.
President-elect Donald Trump has chosen hedge fund executive Scott Bessent as the U.S. Treasury Secretary. Bessent, founder of Key Square Group, was a leading candidate, competing with former Fed Governor Kevin Warsh and private equity executive Marc Rowan.
The U.S. private sector activity posted its fastest pace of expansion in more than two and a half years in November. This was driven by exceptional growth in the services sector, which continues to far exceed even the most optimistic forecasts by economists.