Gold rallies as U.S. Treasury yields dip after rising unemployment claims and strong consumer spending. Retail sales up 0.4% MoM in December, November’s figures revised up to 0.8%. Expectations for 2025 Fed rate cuts grow, with two reductions anticipated by year-end. submitted by /u/Demblin |
Small-cap companies’ earnings remain weak: 12-month forward EPS of the Russell 2000 firms fell to $1.48, near the lowest since 2021. At the same time, the S&P 500’s EPS rose to a record $2.16, or ~46% higher. Since March 2022, when Fed rate hikes began, small-cap earnings are down 22%.
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