Good evening. The S&P 500 ended the week down -2.0%, after a steep drop post the FOMC rate cut decision. Here are the top stocks to watch this week and what’s moving the markets.

👋 Also welcome to the 188 new members who have joined since last Sunday! If you haven’t subscribed yet, join other traders & financial enthusiasts who have decided to get smarter with Illyrian News.

Top Stocks & Setups To Watch This Week

• $TSLA
Break above 447.41 🎯 466.50 & 488.54
• $META
Break above 596.85 🎯 614.20 & 629.79
• $AMD
Break above 116.82 🎯 112.25 & 107.86
• $DAL
Break above 62.66 🎯 64.46 & 66.64
• $CAT
Break above 376.07 🎯 385.93 & 395.47
• $AAPL
Break above 255 🎯 258.90 & 262.98

KV’s S&P 500 Levels

Weekly Market Recap

Rate Cuts

The December FOMC meeting revealed a modestly hawkish Fed, cutting rates to 4.25%-4.5% but signaling just two cuts in 2025 versus earlier projections of four. Chair Powell highlighted slower disinflation and uncertainties around trade policies as reasons for the tempered pace. Markets, already pricing in fewer cuts, may now see room for surprises, supporting sentiment as rate reductions unfold gradually over the next year.

Economic Optimism Grows

Updated Fed projections reaffirmed optimism in the U.S. economy, with GDP growth expected at 2.1% and unemployment at 4.3% for 2025. Strong economic data, including 3.1% annualized GDP growth in Q3 and resilient consumer spending, reinforce the ongoing bull market narrative. These fundamentals, paired with contained inflation, suggest that the economy can weather the Fed's cautious rate normalization approach, supporting steady growth.

Opportunities

After a 27% S&P 500 gain in 2024, recent market pullbacks reflect natural corrections as investors rebalance and lock profits. With bond yields above 4.5% and fundamentals intact, volatility offers opportunities to diversify and rebalance portfolios. The Fed's tempered easing plans may temper sentiment, but long-term investors can leverage these dips to add quality investments, staying aligned with their risk tolerances and financial goals.

Coming Up…

Important economic releases this week include new home sales and consumer confidence. No key earnings are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Wall Street eyes 2025 volatility spikes on Trump tariffs, geopolitics.
• A top Russian general is killed in a Moscow bombing claimed by Ukraine.
• European car stocks entice bargain hunters with 50% discount.
• Massive interest burden haunts $29 trillion of emerging debt.
• European Union grapples with mounting economic challenges.

Trading Quote Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #52 | December 22, 2024

Like Illyrian News? Share it with your friends, family, and colleagues who need to stay on top of the market and earn awesome rewards!

Your referral count: 0, only 1 referral away from winning 50% Off First Month Coupon From KV’s Live Trading Room.

Or copy & paste your referral link to others:
https://news.illyrianoptions.com/subscribe?ref=PLACEHOLDER

Like getting this newsletter, but feel like you could learn more from KV & the team? Find out some of the frameworks and strategies that KV’s private mentorship clients are using to hit their trading goals. Book a free discovery call here.

Want to sponsor this newsletter? Reply to this email with the word PARTNER and we’ll get back to you for further details.