Market Recap: Tech Surge Propels S&P 500 and Nasdaq to New Heights
In a day marked by technological prowess and anticipation of key economic events, the U.S. stock market demonstrated resilience and growth on Wednesday, December 4, 2024. The S&P 500 and Nasdaq Composite continued their impressive run, reaching new record highs, while the Dow Jones Industrial Average showed modest gains.
Market Performance Overview
The S&P 500 climbed 0.3% to close at 6,077.75, marking its third consecutive all-time high. The tech-heavy Nasdaq Composite surged 0.9% to 19,698.15, also setting a new record. Meanwhile, the Dow Jones Industrial Average added 0.4%, reaching 44,939.61, inching closer to its own record territory.
Tech Sector Leads the Charge
Technology stocks were the driving force behind today’s market gains. Notable performers included:
– Nvidia (NVDA): Up 3.64% to $145.37
– Marvell Technology (MRVL): Skyrocketed 24.37% to $119.28 following strong earnings results
– Salesforce (CRM): Jumped 8.80% to $360.60 after reporting better-than-expected quarterly results and a rosy full-year outlook
– Apple (AAPL): Hit a new 52-week high (specific percentage gain not provided in the search results)
The Technology Select Sector SPDR (XLK) gained 0.4%, underscoring the sector’s overall strength.
Other Notable Stock Movements
– Roku (ROKU): Surged 11.45% to $84.36 amid analyst optimism
– VinFast Auto Ltd. (VFS): Led the day’s gainers, up 28.34% to $5.19
– UnitedHealth Group (UNH): Rose 0.80% to $610.06, despite earlier reports of its insurance unit CEO’s tragic death
Market Breadth and Volatility
Market breadth was mixed, with decliners outnumbering advancers on both the NYSE and Nasdaq. The CBOE Volatility Index (VIX), often referred to as the “fear gauge,” decreased slightly, indicating relatively low market anxiety.
Economic Indicators and Upcoming Events
Investors digested several economic reports and are eagerly anticipating key events:
1. Job Openings: The JOLTS report showed job openings increased to 7.74 million in October, exceeding expectations and signaling a robust labor market.
2. Mortgage Rates: The MBA 30-Year Mortgage Rate decreased to 6.69% from the previous 6.86%, potentially boosting the housing market.
3. Federal Reserve Watch: Markets are pricing in a 72% chance of a 25-basis point rate cut at the upcoming FOMC meeting on December 17-18, according to the CME FedWatch Tool.
4. Upcoming Jobs Report: Investors are keenly awaiting the November jobs report, scheduled for release on Friday, which could significantly impact market sentiment and Fed policy expectations.
Looking Ahead: Key Events to Watch
1. Federal Reserve Chairman’s Speech: Jerome Powell is scheduled to speak at a conference in New York, with investors looking for hints about future monetary policy.
2. November Jobs Report: Friday’s employment data will be crucial in assessing the health of the labor market and potential implications for Fed policy.
3. Inflation Data: Upcoming inflation reports will be closely monitored as the Fed aims to bring inflation back to its 2% target.
Market Outlook
As we approach the end of 2024, the market continues to ride the wave of post-election optimism and strong tech sector performance. However, investors remain cautious, balancing the enthusiasm of recent gains with the potential impact of upcoming economic data and Fed decisions.
The tech sector’s dominance, coupled with positive job market indicators, suggests a resilient economy. Yet, the upcoming jobs report and Fed meeting could introduce volatility in the short term. Investors are advised to stay vigilant and diversified as we navigate through these pivotal economic events in the coming days and weeks.
In conclusion, while the market reaches new heights, particularly in tech stocks, the broader economic picture remains complex. The interplay between strong corporate earnings, labor market dynamics, and potential shifts in monetary policy will likely shape market trends as we move towards the year’s end.
