Stock Market Recap: S&P 500 and Dow Jones Hit Record Highs Amid Tariff Talk
The U.S. stock market closed on a high note on Tuesday, November 26, 2024, with major indexes reaching new milestones despite concerns over potential tariffs. This stock market recap highlights the day’s key developments and answers the question, “Why was the market up today?“
Market Performance
The S&P 500 climbed 0.6% to 6,021.63, surpassing its previous record set earlier this month. The Dow Jones Industrial Average added 123.74 points, or 0.3%, closing at a new all-time high of 44,860.31. The tech-heavy Nasdaq Composite gained 0.6%, reaching 19,174.30.
Factors Driving the Rally
1. Treasury Secretary Nomination: President-elect Donald Trump’s nomination of Scott Bessent for Treasury Secretary boosted investor confidence. Markets reacted positively, believing Bessent could guide the economy effectively without sparking inflation.
2. Tech Sector Strength: Big Tech stocks played a crucial role in lifting the indexes. Amazon (AMZN) surged 3.2%, while Microsoft (MSFT) gained 2.2%, providing significant support to the S&P 500.
3. Consumer Discretionary and Real Estate: These sectors were among the day’s top performers, with the Consumer Discretionary Select Sector SPDR (XLY) and Real Estate Select Sector SPDR (XLRE) showing notable gains.
Tariff Talk Impact
President-elect Trump’s announcement of plans to impose sweeping new tariffs on Mexico, Canada, and China created some ripples in the market. However, the impact was relatively muted as investors speculated whether these threats would materialize into policy or serve as negotiation tactics.
Key points:
– General Motors (GM) shares fell 9%, and Ford Motor (F) declined 2.6% due to potential tariff implications.
– International markets showed modest reactions, with slight declines in Asian and Canadian indexes.
Notable Stock Movements
– NVIDIA Corporation (NVDA): Down 4.2%
– Netflix, Inc. (NFLX): Declined 3.6%
– Meta Platforms, Inc. (META): Gained 1.1%
– Apple Inc. (AAPL): Rose 1.1%
– J.M. Smucker: Climbed 5.7% after exceeding quarterly expectations
Upcoming Market Events
Investors are looking ahead to several key economic reports this week:
1. Consumer confidence reading (November 27)
2. October’s personal consumption expenditures price index (November 28)
3. Federal Reserve’s November meeting minutes release (November 28)
4. Jobless claims report (November 27, due to Thanksgiving holiday)
Bond and Crypto Markets
– The 10-year Treasury yield inched up to 4.29% from 4.28%.
– Bitcoin retreated from its recent high of over $99,000, trading around $91,000.
Market Breadth and Sentiment
Overall market breadth was positive, with more stocks rising than falling in the S&P 500. The CBOE Volatility Index (VIX), often referred to as the fear gauge, decreased by 4.20% to 14.60, indicating reduced market anxiety.
Looking Ahead
As the market heads into the Thanksgiving holiday, investors will be closely monitoring the upcoming economic data releases and any developments regarding the proposed tariffs. The stock market will be closed on Thursday for Thanksgiving and will have a shortened session on Friday.
In conclusion, the stock market’s upward momentum on November 26, 2024, was driven by a combination of positive sentiment surrounding the Treasury Secretary nomination, strong performance in the tech and consumer sectors, and a measured response to potential trade policy changes. As always, investors should stay informed about upcoming economic indicators and geopolitical events that could impact market dynamics in the coming days.
