Close this search box.

Weekly Market Recap | 11/27/23

What happened last week

  • A short trading week saw the S&P 500 inch toward an all-time high.

  • Short covering starts to narrow the dispersion between year-to-date winners and losers.

  • Investors sold Nvidia stock despite stronger-than-expected earnings and revenues; AI trade may be in transition.

What we’re watching this week

  • Economic updates include inflation readings in the US and Europe and revisions to the US’s 3Q GDP.

  • Commodity markets are closely watching Thursday’s OPEC meeting.

  • Ahead of the Fed’s media blackout starting this weekend, Powell and other FOMC heavy-weights will speak throughout the week.

Horizon’s Investment Management Views

In a rather listless holiday-shortened trading week, equity markets meandered higher, bringing the gains in the S&P 500 to almost 11% since the late October lows. The Index closed Friday less than 5% from its all-time high. While this has been a quick, sharp rally, we think the bullish price action could extend into the end of the year. Year-to-date laggards have only recently begun benefitting from short-covering flows. Given the performance spreads between the outperformers and underperformers this year, we think further rebalancing is in store for the next few weeks.

The highlight of last week from a market’s perspective was the earnings report from Nvidia after Tuesday’s close. Despite exceedingly strong results and a raise to their guidance for the next quarter, the stock sold off on Wednesday and Friday – which doesn’t signal an end to the AI trade in our view (far from it), but it does highlight the above point that trends may pause for a while. The stock closed Friday up almost 230% this year. Additionally, the market reaction to Nvidia earnings may mark a transition in the AI trade away from the “picks and shovels” hardware companies and towards the software services and model providers of the technology.

Highlights for the week ahead include inflation updates in Europe (Wednesday and Thursday) and the Fed’s preferred inflation measure, the personal consumption expenditures price index (PCE), on Thursday. Revisions to third-quarter GDP and consumer confidence round out the US economic calendar. OPEC’s disputes about the future supply picture were on display as their meeting last weekend was postponed to Thursday. With crude down almost 20% from its September high, the stakes are high for the cartel. Lastly, Powell and other important FOMC members will provide investors with their last thoughts on the economy ahead of the Fed’s media blackout starting on Saturday.


Short covering refers to buying back borrowed securities in order to close out an open short position at a profit or loss.

The commentary in this report is not a complete analysis of every material fact in respect to any company, industry or security. The opinions expressed here are not investment recommendations, but rather opinions that reflect the judgment of Horizon as of the date of the report and are subject to change without notice. Forward looking statements cannot be guaranteed. We do not intend and will not endeavor to provide notice if and when our opinions or actions change. This document does not constitute an offer to sell or a solicitation of an offer to buy any security or product and may not be relied upon in connection with the purchase or sale of any security or device. Before investing, an investor should consider his or her investment goals and risk comfort levels and consult with his or her investment adviser and tax professional. Equities are represented by the S&P 500 Index which is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. References to indices, or other measures of relative market performance over a specified period of time are provided for informational purposes only. Reference to an index does not imply that any account will achieve returns, volatility or other results similar to that index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change. It is not possible to invest directly in an index. This commentary is based on public information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Horizon Investments and the Horizon H are registered trademarks of Horizon Investments, LLC.

You are now leaving this website to go to