Market Recap: Wall Street Rallies as S&P 500 and Dow Hit Fresh Records
Major Indexes Surge Amid Positive Sentiment
The U.S. stock market kicked off the holiday-shortened week on a high note, with major indexes reaching new all-time highs on Monday, November 25, 2024. Investors showed optimism ahead of key economic data releases and the upcoming Thanksgiving holiday.
The S&P 500 climbed 0.5% to a fresh record, while the Dow Jones Industrial Average surged 1%, also reaching unprecedented levels. The Nasdaq Composite gained 0.4%, reflecting the ongoing strength in the technology sector.
Market Movers and Shakers
Large-cap technology stocks led the charge, with Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) each gaining about 2%. Tesla (TSLA), Apple (AAPL), and Microsoft (MSFT) also advanced, contributing to the broader market rally.
However, Nvidia (NVDA) experienced a slight setback, dropping about 2% as investors continued to digest the AI chipmaker’s recent quarterly results.
Upcoming Earnings and Economic Events
Investors are closely watching several high-profile earnings reports scheduled for this week. Dell Technologies (DELL) and HP Inc. (HPQ) are set to report on Tuesday, November 26, after the market close. Analysts expect Dell to post earnings of $2.05 per share on revenue of $24.7 billion.
Other notable companies reporting this week include CrowdStrike (CRWD), Autodesk (ADSK), and Best Buy (BBY).
On the economic front, Wednesday will bring the release of the October personal consumption expenditure (PCE) price index, a key inflation indicator closely watched by the Federal Reserve. Economists expect the core PCE to show a 0.3% month-over-month increase and a 2.8% year-over-year rise.
Market Outlook and Analyst Predictions
Despite concerns about persistent inflation and the potential for higher interest rates, many Wall Street strategists remain optimistic about the market’s trajectory into 2025. Several firms, including Goldman Sachs and Morgan Stanley, have set their 2025 S&P 500 targets at 6,500, implying a roughly 10% gain from current levels.
Tom Hainlin of U.S. Bank Asset Management Group noted, “As we look at all the sequencing of events between election, Fed, inflation, interest rates, consumer spending, so far it lines up relatively supportive of equity prices moving higher into year-end, and into 2025.”
Bitcoin Nears $100,000 Milestone
In the cryptocurrency market, Bitcoin continued its impressive rally, trading around $96,000 after hitting a record high of approximately $99,800 on Friday. The world’s largest cryptocurrency has gained about 40% since the recent U.S. election, buoyed by expectations of a crypto-friendly administration and Congress.
Looking Ahead
As the market enters a holiday-shortened week, investors should be prepared for potential volatility due to lower trading volumes. The release of the Federal Reserve’s November meeting minutes and key inflation data could provide further insights into the central bank’s monetary policy outlook and impact market sentiment.
With the S&P 500 up 25% year-to-date and the Dow Jones Industrial Average outperforming in recent sessions, market participants will be watching closely to see if this momentum can carry through to the end of 2024 and beyond.
