Market Commentary
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The CPC Team
February 12, 2025
January 2025 Economic & Market Highlights
- January delivered a strong start to 2025, as easing inflation data and stable economic conditions lifted both stocks and bonds. U.S. stocks rebounded, with the S&P 500 rising 2.8% and the Dow Jones adding 4.8%. Small caps in the Russell 2000 climbed 2.6%, maintained by renewed optimism about economic resilience and potential rate cuts.
- Bonds posted modest gains, with the Barclays Aggregate Bond Index and the Barclays Municipal Bond Index each up 0.5%. Softer inflation readings helped Treasury yields, reflecting investor confidence in the Federal Reserve's current approach.
- International equities outperformed, with the MSCI EAFE surging 5.3% on improving economic data and a European stock rebound. Emerging markets rose 1.8%, supported by stronger capital inflows and a stable trade environment. Although questions remain about the pace of global growth, January's performance offered a more upbeat tone for the months ahead.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of CPC Advisors and not necessarily those of Raymond James. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The Barclays Capital Municipal Bond is an unmanaged index of all investment grade municipal securities with at least 1 year to maturity. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. The MSCI EAFE (Europe, Australasia, and Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States & Canada. The EAFE consists of the country indices of 22 developed nations. The MSCI Emerging Markets is designed to measure equity market performance in 25 emerging market indices. The index’s three largest industries are materials, energy, and banks.
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