Markets remained mixed between Nov. 28 and Dec. 4 as investors remained convinced of a forthcoming retraction in the Federal Reserve funds rate.

Markets gained on Tuesday as investors remained bullish following dovish comments from a key Fed official. “We feel confident that inflation is really down and on its way, you could then start lowering the policy rate just because inflation is lower,” a member of the Fed’s Board of Governors Christopher Waller said at the American Enterprise Institute. 

The Dow Jones Industrial Average added 0.2%, the S&P 500 added 0.1% and the Nasdaq composite added 0.3%. The Consumer Discretionary Select Sector and the Real Estate Select Sector each increased 0.6%.

The Chicago Board Options Exchange Volatility Index is used to gauge investor sentiment regarding equity markets. The CBOE Volatility Index rose 0.8% to $13.52.

The three major indexes continued sending mixed signals on Wednesday as investors considered remarks from various Fed officials. The Dow gained 0.1%, the S&P 500 lost 0.1% and the technology-heavy Nasdaq lost 0.2%.

The Consumer Staples Select Sector and the Utilities Select Sector each declined 0.8%. The CBOE Volatility Index rose 2.3% to $12.98.

By Thursday’s close, the three major indexes once again yielded mixed results due to investor sentiment pertaining to positive economic data. The Dow increased 1.5%, the S&P 500 increased 0.4% and the Nasdaq decreased 0.2%.

The Bureau of Economic Analysis reported that Personal Consumption Expenditures rose 3.0% year-over-year in October. 

The Bureau of Labor Statistics announced that weekly jobless claims rose 7,000 to 218,800 for the week ending Nov. 25.

The Healthcare Select Sector, the Financials Select Sector and the Industrials Select Sector added 1.3%, 1.1% and 1.1%, respectively.

The CBOE Volatility Index fell 0.5% to a value of $12.92.

All three major indexes gained on Friday following the release of strong economic data depicting a slowdown in rampant inflation. The Dow increased 0.8%, the S&P 500 increased 0.6% and the Nasdaq increased 0.6%.

The Real Estate Select Sector, the Industrials Select Sector and the Consumer Discretionary Select Sector rose 2.1%, 1.6% and 1.4%, respectively.

Markets retracted on Monday, signifying the end of a little more than a month-long stretch of continuous gains. The Dow lost 0.1%, the S&P 500 lost 0.5% and the Nasdaq lost 0.8%. 

The CBOE Volatility Index gained 3.6% to $13.08.

Investors should remain vigilant of the forthcoming monthly jobs data report, which will be released on Friday. 

As the Fed begins to contemplate interest rate cuts, investors should seek exposure to stocks in the Real Estate Select Sector and the Utilities Select Sector. These sectors are currently trading at relatively depressed levels and stand to benefit in the coming months as interest rates are expected to retract in 2024.