Bonds & Stocks
The final week of 2023 is expected to be much quieter on Wall Street after a ferocious rally that put the US stock market within a striking distance of its record. Equities barely budged on Tuesday, following the S&P 500's longest weekly run since 2017. The Federal Reserve's dovish pivot this month fueled risk appetite in a surge that brought the American stock gauge less than 1% away from its all-time high while leading to warnings about a pullback.
Economy
The sharp drop in stocks and jump in the VIX - the so-called fear gauge - on Dec. 20 is a reminder that Federal Reserve Chair Jerome Powell's dovish pivot may not be the panacea for a downturn. The factors that have driven down inflation recently are key. If Powell is right that inflation can slow further without a sharp increase in unemployment, then the stock and bond rallies are justified.
World
China said it was sanctioning a US company and two human rights researchers over work related to Xinjiang, escalating a dispute between the nations over allegations of forced labor.
China was freezing any assets held in the nation by Kharon, Foreign Ministry spokeswoman Mao Ning said at a regular press briefing in Beijing on Tuesday, referring to a Los Angeles-based company that identifies sanctions and compliance risks for organizations.