Stock Market Today: November 28, 2024 – Market Trends, Events, and Major News
Market Performance: Major Indexes and Trends
As of Thursday, November 28, 2024, the stock market is showing mixed signals after a period of record-breaking highs. The Dow Jones Industrial Average recently surpassed the 45,000-point milestone for the first time in history, showcasing the overall strength of the market. However, today’s trading session has seen a slight pullback, with the Dow down 0.3% to 44,722.06.
The S&P 500 and Nasdaq Composite are also experiencing minor declines, down 0.4% and 0.6% respectively. The S&P 500 is currently at 5,998.74, while the Nasdaq stands at 19,060.48. This slight downturn comes after a seven-session winning streak for the S&P 500, indicating a potential market consolidation phase.
Why Is the Market Up Today? Recent Drivers and Concerns
The recent market rally has been driven by several factors:
1. Post-election optimism: The market has shown strength following recent elections, reflecting investor confidence in the political landscape.
2. Inflation data: The Federal Reserve’s preferred inflation gauge, the core personal consumption expenditures (PCE) index, showed a monthly increase of 0.3% in October, consistent with September’s pace. This data suggests that inflation, while still a concern, may be stabilizing.
3. Economic growth: The second estimate of third-quarter GDP confirmed that the US economy grew at an annualized rate of 2.8%, unchanged from the prior estimate. This robust growth has bolstered investor confidence.
However, today’s slight market decline can be attributed to:
1. Tech sector pressure: Large-cap tech stocks, including Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA), are experiencing declines, weighing on the overall market.
2. Profit-taking: After reaching all-time highs, some investors are taking profits, leading to a natural pullback in the market.
Upcoming Market Events and Economic Data Releases
Investors should keep an eye on these upcoming events that could impact the market:
1. ECB General Council Meeting: The European Central Bank’s General Council is meeting today, which could provide insights into European monetary policy.
2. Inflation data: Spain has released preliminary inflation figures for November, showing a year-over-year increase of 2.4%. Similar data from other countries will be closely watched.
3. US jobless claims: The latest US weekly jobless claims data showed 213,000 claims filed in the week ending November 23, indicating continued strength in the labor market.
4. Eurozone economic indicators: Data on loans to companies, loans to households, and M3 money supply for October are being released today, offering insights into the European economy.
Major Stock News and Corporate Announcements
Several major companies are making headlines in today’s market:
1. Dell Technologies (DELL): Shares plunged 12% following disappointing earnings results, highlighting concerns about demand in the broader tech sector.
2. HP Inc. (HPQ): The company’s stock tumbled 12% after its earnings release, further underscoring challenges in the technology hardware space.
3. Nvidia (NVDA): The AI chip giant’s stock dropped 1.15%, continuing a downward trend that has seen it fall 9.36% over the past five days. Investors are weighing the company’s latest quarterly earnings report, which hinted at slower revenue growth despite strong profitability.
4. Workday (WDAY): Shares slid 6.2% following the company’s earnings report.
5. CrowdStrike (CRWD): The cybersecurity firm’s stock was off 4.6% in recent trading.
Market Outlook and Investor Sentiment
As we approach the end of 2024, the market outlook remains cautiously optimistic. The recent rally has been supported by strong economic data and corporate earnings. However, investors are closely monitoring several factors:
1. Federal Reserve policy: The CME FedWatch Tool indicates a 34% chance that the Fed will hold rates steady at its December meeting, up from 24% a month ago. Any shifts in monetary policy could significantly impact market sentiment.
2. Holiday shopping season: With Thanksgiving and Black Friday approaching, retail sales figures will be crucial in gauging consumer spending and economic health.
3. Geopolitical developments: Ongoing global events and trade relations continue to influence market volatility.
4. Tech sector performance: Given the recent pressure on technology stocks, their performance in the coming weeks could be a key driver of overall market direction.
As always, investors are advised to maintain a diversified portfolio and stay informed about market developments. With the current mix of positive economic indicators and potential headwinds, the stock market remains an area of both opportunity and caution as we move towards the end of 2024.
