It was a mixed week for equity markets as the S&P snapped a three-week streak of gains and the Nasdaq posted a new all time high supported by asset flows into many of the mega-cap tech names. As the end of the year draws near, US equities are on pace for back- to-back years of over 20% gains for the first time since 1999. Tailwinds for this year’s performance include solid economic growth, falling inflation, and the start of easing monetary policies by the Federal Reserve. However, last week’s inflation release marked the second month in a row the CPI came in above the previous month’s reading. While the last week’s reading was in line with expectations, it may be a sign inflation reduction is stalling, which could increase uncertainty regarding future central bank actions. With the Federal Reserve meeting this week, expectations remain high for another 25-basis points rate cut, but expectations for rate cuts by the end of 2025 are moderating, current expectations suggest a total of 75 bps down from 175 bps expected in late September.