S&P Pullback & The Policy Pivot | Weekend Nov 22

The market ends the week of November 21 in a resolute 'NEUTRAL' stance after a sharp technical pullback saw the S&P 500 drop nearly 2% amid profit-taking in AI and high-growth sectors. We break down the core conflict: Resilient Q3 GDP and strong services activity are battling significant softening in manufacturing, creating a 'Growth/Inflation Tug-of-War.' Adding to the confusion, dovish commentary from Fed Governor Waller was muted by the critical delay of the October CPI report, reinforcing market caution.Ahead of a low-liquidity Thanksgiving week (Nov 24-28), our focus shifts entirely to Tuesday’s crucial Consumer Confidence report, which acts as the tie-breaker for the soft landing narrative. We discuss the 'Quality and Duration Dilemma,' advising investors to prioritize high-quality, secular growth stocks and maintain caution on long-term fixed income due to persistent fiscal debt risks. Plus, key insights from earnings reports (Alibaba, Dell, Kohl’s) and the fragility of the US-China trade truce.

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