Last week, the equity markets experienced some volatility to wrap up the year with major U.S. indices falling several percentage points before a partial recovery rally on Friday offset much of the earlier losses. The markets continued to react to the Federal Reserve’s hawkish indication of fewer rate cuts in 2025 than previously expected, which led to a surge in bond yields and a decline in stock prices. The 10-year U.S. Treasury note yield reached its highest level since April. Despite a bumpier than anticipated end of the year for markets, the U.S. economy showed strong third-quarter growth, with GDP increasing at an annual rate of 3.1%. The value of the U.S. dollar also surged relative to other currencies following the Fed’s outlook.