The Dow Jones Industrial Average topped 28,000 as the U.S. stock market continued its fourth-quarter rally. The U.S. and China trade talks had limited progress this the week and it is unclear whether the U.S. will roll back any prior tariffs placed upon on Chinese goods. The markets, however, interpreted this as being better than a backslide as the consensus is that both sides are eager to come to a resolution. In his testimony to Congress, Powell signaled that he saw no need for any further cuts to short-term rates as the economy is in solid condition. Inflation remains under control as unemployment remains at record lows. Beyond the business headlines, the House Intelligence Committee began public hearings in the impeachment process and the world watched in horror as the violence and chaos in Hong Kong escalated after a student was shot.

The S&P 500 posted its sixth consecutive week of gains and its twenty-first record close as investors were optimistic about trade and U.S. retail sales data. U.S. retail sales rose 0.3% after experiencing a fall of 0.3% in September. Underscoring the resilience of the consumer, Disney’s new streaming service launch attracted over 10 million new subscribers in 24 hours. International developed stocks, which have long been on the sidelines of the multi-year rally, also had a strong run over the last few weeks as investors searched for value. Emerging market stock prices, however, were dampened by the disturbing events unfolding in Hong Kong. Bond prices held their ground as the 10-Year Treasury yield settled back from a high of 1.94% this week to end the week at 1.84%.

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