Market Recap: S&P 500 and Dow Hit New Highs as November Rally Continues
Market Performance Highlights
On Friday, November 29, 2024, the U.S. stock market closed higher in a holiday-shortened trading session, capping off a robust month for equities. The S&P 500 and Dow Jones Industrial Average both reached new all-time highs, reflecting strong investor confidence and positive market sentiment .
Key index performances for the day:
– S&P 500: Up 0.56% to 6,032.38
– Dow Jones Industrial Average: Gained 188.59 points (0.42%) to 44,910.65
– Nasdaq Composite: Increased 0.83% to 19,218.17
The market’s upward momentum was largely driven by chip stocks, with the iShares Semiconductor ETF (SOXX) adding 1.3% . This sector boost came after reports suggested that potential additional U.S. curbs on chip technology sales to China might be less stringent than previously anticipated .
November Market Overview
November has proven to be an exceptionally strong month for U.S. equities:
– Dow Jones Industrial Average: Up 7.5%
– S&P 500: Gained over 5%
– Nasdaq Composite: Increased by more than 6%
– Russell 2000: Surged 10.8%
These gains mark the best monthly performance of 2024 for both the Dow and S&P 500 . The small-cap Russell 2000 index outperformed larger indexes, benefiting from expectations of potential tax cuts and deregulation .
Key Factors Driving the Market
1. Post-Election Rally: The market’s strong performance in November was largely attributed to the post-election rally following President-elect Donald Trump’s victory .
2. Interest Rate Expectations: Investors are pricing in a high likelihood of interest rate cuts. The CME Group’s FedWatch Tool indicates a 66% probability of a 25 basis point rate cut at the next Federal Reserve meeting .
3. Record Inflows: U.S. equities saw unprecedented investor interest, with $141 billion flowing into stocks this month—the heaviest four-week inflow on record, according to EPFR Global data .
4. Chip Sector Optimism: Reports of potentially less severe restrictions on chip technology sales to China boosted semiconductor stocks .
Notable Stock Movements
Several stocks made significant moves on November 29:
– Lam Research (LRCX): Up more than 5%, leading gains in the S&P 500 and Nasdaq 100 .
– KLA Corp (KLAC): Gained over 4% .
– Nvidia (NVDA): Rose more than 2%, topping the Dow Jones Industrials .
– Tesla (TSLA): Increased 2.1%, continuing its post-election surge of over 33% .
– MicroStrategy (MSTR): Jumped more than 5% as Bitcoin approached the $100,000 mark .
Upcoming Market Events
Investors should keep an eye on these upcoming events that could impact the market:
1. Federal Reserve Meeting: The next FOMC meeting on December 17-18 will be closely watched, with high expectations for a potential rate cut .
2. Holiday Shopping Season: As Black Friday kicks off the holiday shopping season, retail performance will be a key indicator of consumer sentiment and economic health .
3. OPEC Meeting: The OPEC meeting has been delayed to December 5, which could impact oil prices and related sectors .
4. Earnings Reports: Several companies are set to report earnings, including Cleanspark Inc (CLSK), Patterson Cos Inc (PDCO), and Zuora Inc (ZUO) .
Global Market Context
While U.S. markets rallied, global markets showed mixed results:
– Euro Stoxx 50: Up 0.49%
– China’s Shanghai Composite Index: Closed up 0.93%
– Japan’s Nikkei Stock 225: Closed down 0.37%
European inflation data showed signs of cooling, with Eurozone November CPI rising 2.3% year-over-year, in line with expectations .
As we head into December, the market’s resilience and the continued optimism surrounding potential policy changes suggest a strong finish to the year. However, investors should remain vigilant of global economic indicators and geopolitical developments that could influence market dynamics in the coming weeks.
