The major markets closed out a volatile week with mixed performance. The NASDAQ and the Russell 2000 both closed lower while the S&P 500 and the Dow managed to see gains. The array of returns was noteworthy due to the factthat the Dow Jones logged a fresh all time new high and broke through the 48,000 threshold. The style boxes showed that large cap value is one of the few positive areas of the broad market last week.

Meanwhile, at the sector level, we see clear out and underperformance of a handful of sectors, healthcare and energy both managed to log respectable gains while consumer discretionary saw the greatest pullback. Surprisingly, information technology was somewhat non-correlated to the performance scene and communication services and consumer discretionary this last week. While these sectors don’t necessarily move in tandem, they do tend to have a higher correlation as their respective constituents are often some of the largest names of the domestic market and carry a technology bent.

The week started strong on Monday. Optimism are on progress and the government shut down boosted sentiment. Mega cap tech surged AI names rallied and breath was solid with the S&P 500, jumping more than one and a half percent in ship makers powering higher. Tuesday brought profit taking in tech, amplified by news that SoftBank sold its entire Nvidia stake, but the rest of the market stepped up. Nine of the 11 sectors rose with healthcare, continuing a strong November performance. By Wednesday, leadership had widened beyond growth stocks.

The Dow closed above 48,000 for the first time, driven by financials, healthcare and airlines rebounding. A shutdown resolution neared, but mega caps again lagged, especially in communication services and consumer discretionary. Thursday was the turning point. A wave of hawkish fed remarks sharply reduced expectations of a December rate cut now closer to a coin flip, but with a greater than not probability of no change in the Fed funds rate.

At the final FOMC meeting of the year, but with a greater than not probability of no change in the Fed funds rate. At the final FOMC meeting of the year, markets sold off broadly with the S&P 500 and the NASDAQ dropping more than 1.5% and high beta names taking the brunt of the pain. Volatility spiked as investors reassessed stretch valuations. On Friday, the market stabilized.

Early losses reversed as chip makers and large tech recovered helping the S&P 500 and NASDAQ reclaim their 50 day moving averages. Energy led with a strong rebound in oil and buyers stepped back into semiconductors and other growth pockets ahead of key earnings next week. All told the week reflected a market grappling with policy and certainty, stretch valuations and rapid sector rotation, but still finding support as investors showed a willingness to buy dips in key areas.