Market Wrap - December 8, 2023

U.S. stocks finished higher on Friday after the latest jobs report showed continued resilience in the labor market while wage growth moderated. The S&P 500 and Nasdaq both notched weekly gains as investors grew more confident about potential interest rate cuts next year.

Key Market Drivers:

• Jobs Report: The November employment data revealed steady job creation alongside cooling wage pressures, supporting hopes for a "soft landing" scenario.
• Rate Cut Optimism: Traders increased bets that the Federal Reserve could begin lowering interest rates by mid-2024 as inflation shows signs of easing.
• Tech Rally: Large-cap technology stocks led the upside, with semiconductor and software companies seeing strong demand.

Corporate News:

• Broadcom shares climbed after the chipmaker reported strong quarterly results and provided an optimistic outlook for AI-related demand.
• Lululemon stock declined after the athletic apparel retailer issued cautious guidance for the holiday quarter despite beating earnings expectations.
• DocuSign shares jumped following better-than-expected earnings and an announcement of workforce reductions to improve profitability.

Looking Ahead:
Next week brings several key economic reports including consumer inflation data that could influence the Federal Reserve's final meeting of the year. Markets will closely watch for any shifts in the Fed's policy stance and updated economic projections.