Weekly Stock Market Update & SPY Technical Analysis
To everyone’s surprise, the U.S. economy grew far ahead of expectations per last week’s GDP report, which triggered a multi-day rally and pushed markets to record highs on Christmas Eve. Third quarter GDP came in at 4.3%, exceeding the 3.2% forecast thanks to strong consumer spending, exports, and government spending. Consumer consumption rose 3.5% annualized, driven by both services and goods. While exports grew sharply, helping add to overall growth.
Consumer spending GDP breakdown:
While the surface level numbers give a general picture, it’s important to dive deeper into the data. When we break down where consumers spent their money, we see that the leading contributors were health care, recreational goods, vehicles, as well as other nondurable goods. Health care spending topped the list, which means a meaningful portion of the increase is being driven by necessity rather than discretionary demand. Rising insurance premiums, medical services, and prescription costs can inflate spending figures even when consumers are not actually consuming more in real terms. As a result, headline strength in consumer spending may overstate underlying economic momentum, masking pressure on household budgets and reduced flexibility in truly discretionary areas.
This week’s focus:
The market will wrap up the 2025 trading year this week and kick off the new year on Friday. Thursday, January 1st, will be the New Year’s Holiday. There are a few reports that are still important through the week:
- Pending Homes Sales (Tue)
- Chicago Business Barometer (Tue)
- Minutes of Fed’s December FOMC Meeting (Tue)
- Initials Jobless Claims (Wed)
We’ll cover each of these reports in our daily market update throughout the week as they’re released for our Hyper Stocks Pro members.
SPY Technical Analysis:
The question on everyone’s mind is whether or not SPX will reach 7,000 before end of year or not, which would put SPY at 700.00+. Last week’s new SPY record was 691.66, making that the resistance in focus for a breakout coming into this week.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
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