Market Recap: S&P 500 and Nasdaq Hit New Highs Amid Mixed Trading on December 9, 2024
Market Performance Overview
On Monday, December 9, 2024, the U.S. stock market experienced mixed trading, with the S&P 500 and Nasdaq Composite retreating slightly from their record highs set last Friday. As of midday trading, the S&P 500 was down 0.5%, the Dow Jones Industrial Average fell 0.2%, and the Nasdaq Composite declined 0.7% .
Despite the slight pullback, it’s worth noting that last week saw positive performance for two of the three major indexes. The S&P 500 and Nasdaq Composite gained 1% and 3.3% respectively, while the Dow slipped 0.6% . This recent performance underscores the market’s resilience and ongoing bullish sentiment.
Key Market Movers and Corporate News
Several notable stocks and events influenced today’s market:
1. Nvidia (NVDA): The AI chipmaker’s stock fell 3.4% following news of an investigation by Chinese regulators over potential anti-monopoly law violations .
2. Interpublic Group (IPG): Shares soared 7.2% after announcing a merger with rival Omnicom (OMC) in an all-stock deal, potentially creating the world’s largest advertising company .
3. Super Micro Computer (SMCI): The stock surged after receiving an extension from Nasdaq to regain compliance with listing requirements .
4. Palantir (PLTR): Shares jumped following the announcement of a partnership with Anduril to develop AI-powered military and national security solutions .
5. Oracle (ORCL): The data analytics giant’s stock advanced ahead of its quarterly earnings report, scheduled for release after market close .
Economic Indicators and Federal Reserve Expectations
Investors are closely watching this week’s economic data releases, particularly the inflation reports:
1. Consumer Price Index (CPI): November’s CPI data will be released on Wednesday, providing crucial insights into consumer-level inflation .
2. Producer Price Index (PPI): Thursday will bring the release of November’s wholesale inflation data, offering a perspective on price pressures at the producer level .
These reports are especially significant as they will be the last major economic indicators before the Federal Reserve’s upcoming interest rate decision on December 18. Market participants are widely expecting another rate cut, which would be the third this year .
Global Market Influences
International events are also shaping market sentiment:
1. Chinese Economic Stimulus: Reports of China adopting a “moderately loose” monetary policy have boosted optimism for increased economic stimulus in the world’s second-largest economy .
2. Geopolitical Tensions: The overthrow of Syrian leader Bashar Assad has contributed to a rise in oil and gold prices, with U.S. crude up 2.2% to $68.66 per barrel and gold climbing 1.2% .
Looking Ahead: Market Expectations and Events to Watch
As we move through the week, several key factors will likely influence market direction:
1. Inflation Data: The upcoming CPI and PPI reports will be crucial in shaping expectations for the Federal Reserve’s decision next week.
2. Federal Reserve Meeting: The central bank’s final interest rate decision of the year, scheduled for December 18, will be a pivotal event for market participants.
3. Corporate Earnings: With Oracle’s earnings report due after market close, investors will be watching for signs of continued strength in the tech sector.
4. Global Economic Developments: Ongoing developments in China’s economic policy and geopolitical events will continue to impact market sentiment.
In conclusion, while today’s trading session saw a slight retreat from recent highs, the overall market sentiment remains cautiously optimistic. Investors are balancing positive expectations for interest rate cuts with concerns about global economic growth and geopolitical tensions. As always, market participants should stay informed and prepared for potential volatility in the days ahead.
