Stock Market Recap: Why Was the Market Up Today? – November 4, 2024
Major Indexes Close Higher as Election Week Begins
The U.S. stock market ended Monday, November 4, 2024, on a positive note, with major indexes showing gains as investors navigated a week filled with high-stakes events. The S&P 500 climbed 0.41% to 5,728.80, while the Dow Jones Industrial Average rose 0.69% to 42,052.19, and the Nasdaq Composite added 0.8% to close at 18,239.92.
Market Performance and Key Drivers
Today’s market rally came despite the looming U.S. presidential election and the upcoming Federal Reserve policy meeting. Investors seemed to shrug off concerns, focusing instead on recent earnings reports and economic data.
Consumer discretionary and technology stocks led the gains, with the Consumer Discretionary Select Sector SPDR (XLY) rising 1.6% and the Technology Select Sector SPDR (XLK) gaining 0.8%. However, utilities faced headwinds, with the Utilities Select Sector SPDR (XLU) declining 2.2%.
Upcoming Market Events
Two major events are capturing investors’ attention this week:
1. U.S. Presidential Election (November 5, 2024): The election is expected to have significant implications for fiscal policy, regulation, and international trade relations.
2. Federal Reserve Policy Meeting (November 6-7, 2024): Market participants are anticipating another quarter-percentage point cut in interest rates, which could further stimulate economic growth.
Major Stock News and Corporate Developments
Several notable companies made headlines today:
1. Nvidia Corporation (NVDA): Shares were up 2% following the announcement that Nvidia will replace Intel in the Dow Jones Industrial Average starting November 8. This change reflects Nvidia’s growing importance in the AI and technology sectors.
2. Amazon.com, Inc. (AMZN): The e-commerce giant’s stock jumped 6.2% after reporting strong third-quarter earnings, beating analyst expectations with earnings per share of $1.43 and revenues of $158.88 billion.
3. Apple Inc. (AAPL): Shares dipped 0.2% after news that Warren Buffett’s Berkshire Hathaway continued to reduce its stake in the company during the third quarter.
4. Microsoft Corporation (MSFT): The tech giant saw its stock rise 1%, benefiting from the overall positive sentiment in the technology sector.
5. The Boeing Company (BA): Boeing’s stock increased nearly 1% as investors awaited the results of a union vote on the company’s latest deal with striking machinists.
Economic Indicators and Market Outlook
Recent economic data has painted a mixed picture of the U.S. economy. The October jobs report showed the economy added only 12,000 jobs, significantly below expectations. However, the unemployment rate remained steady at 4.1%, in line with estimates.
The CBOE Volatility Index (VIX), often referred to as the “fear gauge,” decreased by 5.53% to 21.88, indicating a slight easing of market anxiety despite the upcoming high-impact events.
Looking Ahead: Earnings and Economic Data
As earnings season continues, investors will be closely watching reports from companies such as:
– Palantir Technologies (PLTR) – November 4 (after market close)
– Yum Brands (YUM) and Restaurant Brands International (QSR) – November 5
– CVS Health Corporation (CVS), Qualcomm (QCOM), and Arm Holdings (ARM) – November 6
These reports, along with the election results and Fed decision, will likely drive market sentiment in the coming days.
In conclusion, the stock market’s positive performance today reflects investor optimism in the face of significant upcoming events. As the week unfolds, market participants will be keenly watching for any shifts in the political landscape and monetary policy that could impact the broader economic outlook and individual stock performances.
