Market Recap: Why Was the Stock Market Up Today? – November 13, 2024
Major Indexes Close Higher as Post-Election Rally Resumes
The U.S. stock market rebounded on Wednesday, November 13, 2024, as investors digested the latest consumer price index (CPI) report and continued to ride the wave of post-election optimism. The major indexes closed in positive territory, resuming the upward trend that has characterized the market since Donald Trump’s re-election to the White House.
Key Market Movements:
– The Dow Jones Industrial Average (DJI) rose 0.5% to close at 44,102.13
– The S&P 500 gained 0.4%, finishing at 6,007.87
– The Nasdaq Composite advanced 0.3%, ending at 19,339.24
Inflation Data Aligns with Expectations
The closely watched CPI report released early Wednesday showed that prices rose 0.2% last month, with annual inflation coming in at 2.6%. Both figures were in line with economists’ estimates, helping to reinforce expectations that the Federal Reserve will continue its rate-cutting cycle at its December meeting.
Treasury Yields and Dollar Strength:
– The 10-year Treasury yield settled at 4.44%, up slightly after initial dips following the inflation report
– The U.S. dollar index reached 105.92, approaching Tuesday’s high of 106.17, its strongest level since May 1
Notable Stock Movements and Sector Performance
Several individual stocks made significant moves on Wednesday, influenced by earnings reports and broader market trends:
1. Tesla (TSLA): Up 0.5%, continuing its post-election rally
2. Cava Group (CAVA): Surged 7% after reporting strong earnings
3. Spotify (SPOT): Gained 11% following positive quarterly results
4. Rocket Companies (RKT): Plummeted 10% after missing revenue estimates and providing soft guidance
Tech Giants Mixed:
– Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) saw gains
– Nvidia (NVDA), Alphabet (GOOGL), and Meta Platforms (META) experienced slight declines
Cryptocurrency and Commodities Update
The cryptocurrency market continued its bullish run, while traditional safe-haven assets faced pressure:
Bitcoin Breaks Records:
– Bitcoin surged to a new all-time high above $93,000
– The cryptocurrency has gained approximately 35% since the election
Gold and Oil:
– Gold prices dipped 0.7% to around $2,590 an ounce
– Crude oil prices remained subdued, with Brent futures at $72 per barrel and WTI at $68.26
Upcoming Market Events to Watch
Investors should keep an eye on these potential market movers in the coming days:
1. Federal Reserve speeches and minutes release
2. Retail sales data for October
3. Earnings reports from major retailers
4. Developments in U.S.-China trade relations following the election
Market Outlook and Analyst Perspectives
While the market has shown resilience in the face of rising bond yields and inflation concerns, analysts remain cautious about potential headwinds:
Kyle Rodda, Senior Financial Markets Analyst at Capital.com, notes:
“It all continues to be a part of the Trump trade, which, at its core, is about deeper deficit spending. However, as has proven the case in other market melt-ups, a tug-of-war eventually emerges between stocks and bonds, as higher risk-free rates strangle valuations.”
Investors are advised to monitor the following factors that could impact market performance in the near term:
1. The pace of Federal Reserve rate cuts
2. Implementation of Trump’s proposed economic policies
3. Global trade tensions, particularly with China
4. Corporate earnings and guidance for Q4 and beyond
As the market navigates post-election dynamics and economic uncertainties, staying informed on these key factors will be crucial for investors looking to make informed decisions in the current market environment.
