US stocks traded mixed as investors considered the potential for a year-end rally and the outlook for interest rates in 2025. The S&P 500 and Dow Jones fell, while the Nasdaq rose, amid speculation about a Santa Claus rally despite a recent stock selloff. Traders are also assessing the likelihood of interest rate cuts following recent inflation data, with a strong chance the Fed will maintain rates at its January meeting.
Ned Davis Research has upgraded Canadian stocks to overweight following a 22% rally, highlighting their strong performance alongside U.S. markets. Chief global investment strategist Tim Hayes noted that Canadian stock valuations remain attractive and are less reliant on megacap sectors.
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