Market Recap: S&P 500, Nasdaq Surge on Tech Rally; Inflation Data Meets Expectations
Market Performance Overview
On Wednesday, December 11, 2024, the U.S. stock market experienced a significant rally, primarily driven by the tech sector. The S&P 500 (^GSPC) climbed 0.86% to close at 6,086.62, while the tech-heavy Nasdaq Composite (^IXIC) surged an impressive 1.77% to finish at 20,035.81. The Dow Jones Industrial Average (^DJI), however, saw a slight dip of 0.06%, ending the day at 44,221.84.
Tech Stocks Lead the Charge
The day’s gains were largely attributed to a feverish rally in the “Magnificent Seven” tech stocks. Notable performances included:
– Google parent Alphabet (GOOGL) hit a record high, surging up to 4.6%.
– Tesla (TSLA), Meta (META), Amazon (AMZN), and Apple (AAPL) all reached new all-time highs.
– NVIDIA Corporation (NVDA) saw a significant increase of 3.46%, closing at $139.75.
Inflation Data and Federal Reserve Expectations
The market’s positive reaction was partly due to the release of the latest Consumer Price Index (CPI) data. The inflation figures met economists’ expectations, potentially paving the way for a Federal Reserve interest rate cut in the coming week. The Core CPI month-over-month (SA) remained steady at 0.3%, aligning with previous estimates.
Cryptocurrency Milestone
In a significant development for the cryptocurrency market, Bitcoin (BTC-USD) soared above $100,600 per token during afternoon trading, marking a new milestone for the digital currency.
Notable Stock Movements
Several individual stocks saw notable movements:
– Oracle (ORCL) tumbled 6.7% following a slight earnings miss in its fiscal Q2 2025 report.
– G-III Apparel Group (GIII) surged 10.4% after beating earnings expectations.
– United Natural Foods (UNFI) jumped 20% on better-than-expected quarterly results.
– GameStop (GME) saw a significant increase of 9.13%, closing at $29.39.
Economic Indicators
The day also brought several important economic indicators:
– The Mortgage Market Index increased from 213.9 to 225.5.
– The MBA 30-Year Mortgage Rate slightly decreased from 6.69% to 6.67%.
– The National Federation of Independent Business (NFIB) small business optimization index reached 101.7 for November, surpassing the 50-year average of 98 for the first time in 34 months.
Upcoming Market Events
Investors should keep an eye on these upcoming events that could impact market performance:
1. Federal Reserve interest rate decision (expected next week)
2. Earnings reports from major companies, including Adobe (ADBE) and Macy’s (M)
3. Ongoing developments in U.S.-China trade relations, with potential implications for currency markets
International Considerations
Global factors continue to play a role in market dynamics:
– Reports suggest China is considering a weaker yuan to brace for potential Trump tariffs.
– U.S. Treasury Secretary Janet Yellen warned that Trump’s tariffs could derail U.S. inflation progress and raise costs.
Looking Ahead
As we move towards the end of 2024, market participants are closely watching several factors:
– The potential for a Federal Reserve rate cut in December
– Ongoing developments in artificial intelligence and their impact on tech stocks
– The evolving landscape of international trade and its effects on global markets
In conclusion, the December 11, 2024 market session demonstrated strong performance in tech stocks and positive reactions to inflation data. As investors digest these developments, all eyes will be on the Federal Reserve’s upcoming decision and its potential impact on market trajectories heading into 2025.
