Briefings

Week InReview: January 3, 2025

Equity futures climb.

US equity futures climb, signaling another attempt by the S&P 500 to end a losing streak that stretched to five sessions. The index is on pace for a 1.7% drop since Friday.

 

Asian stocks bucked the dour global mood that dragged US shares lower, with gains in South Korea, Australia and Hong Kong. US equity futures also rose. Chinese stocks fell, while the nation's 10-year government bond yield slipped below 1.6% for the first time.

 

The US banking system's reserves, a key factor in the Federal Reserve's decision to keep shrinking its balance sheet, tumbled below $3 trillion to the lowest since October 2020. Bank reserves fell by about $326 billion in the week through Jan. 1 to $2.89 trillion, according to Fed data.

 

US stocks extended a selloff for a fifth day. Tesla's post-Christmas slump swelled to nearly 20% after its annual vehicle sales dropped, dragging on the indexes. The Cboe Volatility Index climbed for the fourth time in five days. Treasury yields steadied following a choppy session.

 

Multistrategy funds of all sizes produced mostly double-digit gains in 2024, in what was generally an upbeat year for the hedge fund industry. Citadel invited clients to cash out profits after a roughly 15% gain in its flagship strategy, but the vast majority opted to stay put.


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