Market Recap: Stocks Mixed as Nasdaq Hits Record High on October 25, 2024
Major Indexes Performance
As the trading week came to a close on Friday, October 25, 2024, the U.S. stock market presented a mixed picture. The Nasdaq Composite stole the spotlight, surging 1.3% to touch an all-time high of 18,690. This impressive performance puts the tech-heavy index on track for its seventh consecutive week of gains. The S&P 500 also showed strength, rising 0.5% and attempting to snap its recent losing streak. However, the Dow Jones Industrial Average lagged behind, dipping 0.2% and potentially ending its six-week winning streak .
Tech Stocks Lead the Charge
The day’s rally was largely driven by strong performances in the technology sector. Tesla (TSLA) continued its impressive run, adding another 3% to Thursday’s remarkable 22% surge, which marked its best day since 2013 . Other tech giants also contributed to the market’s upward momentum:
– Nvidia (NVDA) flirted with record highs, climbing more than 2% .
– Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) all posted gains .
– Semiconductor stocks like Intel (INTC), Lam Research (LRCX), and Arm Holdings (ARM) helped boost the Nasdaq 100 .
Notable Stock Movements
While tech stocks dominated the headlines, other sectors saw significant movements:
– Capri Holdings (CPRI), parent company of Michael Kors, saw its shares plummet nearly 50% after a federal judge blocked its proposed $8.5 billion acquisition by Tapestry (TPR), the owner of Coach .
– Deckers (DECK), maker of Ugg and Hoka footwear, surged 11% following better-than-expected quarterly results and an improved outlook .
– Centene (CNC) shares rose 7% after the managed care company reported strong earnings .
– Colgate-Palmolive (CL) dipped 3% following its earnings release .
Economic Indicators and Market Sentiment
The day’s trading was influenced by several economic reports:
– September durable goods orders fell 0.8%, slightly worse than the expected 0.5% drop. However, excluding transportation, orders rose 0.4%, beating estimates of a 0.1% decline .
– The University of Michigan consumer confidence index came in at 70.5, surpassing expectations of 69.0 .
Despite the 10-year Treasury yield holding near recent highs, the major stock indexes continue to show resilience. This suggests that investors are adapting to the possibility of a less aggressive interest rate cut schedule from the Federal Reserve than initially anticipated .
Looking Ahead: Upcoming Market Events
Investors are bracing for a crucial week ahead, with several key events on the horizon:
1. Earnings Reports: ‘Magnificent 7’ members Apple, Microsoft, Alphabet, Meta, and Amazon are set to release their quarterly results .
2. Tech Sector Insights: Reports from Intel and Advanced Micro Devices will provide further insights into the semiconductor industry .
3. Diverse Sector Reports: Companies like McDonald’s, Eli Lilly, ExxonMobil, and Starbucks will offer a broader view of the economy’s health .
These upcoming reports will likely play a crucial role in determining market direction in the near term, potentially influencing whether the Nasdaq can maintain its record-setting pace and if the S&P 500 and Dow can regain their upward momentum.
As we close out this eventful trading day, it’s clear that the stock market continues to navigate a complex landscape of corporate earnings, economic data, and shifting monetary policy expectations. Investors should remain vigilant and prepared for potential volatility in the coming weeks as these factors continue to shape market dynamics.
