#equities

#equities

Futures are fighting to go green this morning. At the moment, the S&P 500 is down about 0.18%, or by 12 points. The SPDR S&P 500 ETF ( SPY) is up fractionally. The Dow is down about 0.13%, or by 77 points. The Nasdaq is down 0.33%, or by about 80 points. All after the release of the consumer price index, which showed a slower annual rate of inflation than expected.

"I've been looking for a blow-off in equities for over three years now - followed by the worst crash since 1929," Mark Spitznagel, the founder and chief investor of Universa Investments, told Business Insider in a recent email.

The Consumer Price Index print for November lit a fire under stocks as it came in much lower than expected at 2.7%. However, many on Wall Street were quick to throw cold water on the party, saying the data was incomplete due to the government shutdown and that we need to see complete December statistics in January to make sure a lower inflation trend is indeed in place.

US household net worth climbed to a record $176.29 trillion in the second quarter, according to data released Thursday by the Federal Reserve. That's an increase of $7.3 trillion from the first quarter of this year - and about $46 trillion more than in the final quarter of 2019, before the pandemic upended the economy. The surge was largely driven by Wall Street's continued rally.

Mid-cap and small-cap indexes outperformed, while the technology-heavy Nasdaq slipped as investors took profits from this year's strong run in artificial intelligence-related stocks. The Fed remains the central focus. Powell acknowledged that inflation remains a challenge but also highlighted weakening signs in the labor market. He noted that interest rates are currently at restrictive levels, and the balance of risks may be shifting toward employment. His comments raised expectations that the Fed could begin lowering rates soon.