Market Recap: Wall Street Rebounds as Investors Eye Nvidia Earnings and Fed Policy
Major Indexes Show Mixed Performance
As of the close of trading on Monday, November 18, 2024, Wall Street showed signs of recovery following last week’s sharp sell-off. The S&P 500 (.SPX) ended the day up 0.06% at 5,874.17, while the Nasdaq Composite (.IXIC) gained 0.20%, closing at 18,717.93. However, the Dow Jones Industrial Average (.DJI) saw a slight decline of 0.03%, finishing at 43,431.89 .
This mixed performance comes as investors digest the previous week’s losses, which were the worst since September. Last week, the S&P 500 and Nasdaq Composite fell 2.1% and 3.2% respectively, as the post-election rally that had propelled stocks to record highs lost momentum .
Tech Stocks in Focus
The technology sector remains a key driver of market sentiment. Nvidia (NVDA), a bellwether for the AI industry, saw its shares decline 3% in early trading following reports of overheating issues with its new Blackwell chips. Investors are keenly awaiting Nvidia’s earnings report, scheduled for release on Wednesday, which is expected to provide insights into the health of the AI market .
Other tech giants showed mixed results. Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN) all saw slight gains, while Meta Platforms (META) experienced a minor dip .
Tesla Surges on Potential Policy Shift
Tesla (TSLA) emerged as a standout performer, with its stock price surging 6% following reports that President-elect Donald Trump’s transition team is planning a federal framework for fully self-driving vehicles. This news has fueled investor optimism about easier regulations for Tesla’s robotaxi ambitions. The electric vehicle maker’s stock has now gained an impressive 40% since Election Day, reflecting market expectations of benefits from CEO Elon Musk’s close relationship with the incoming administration .
Upcoming Market Events
Investors are closely monitoring several key events that could impact market direction in the coming days:
1. Nvidia Earnings Report: The highly anticipated release on Wednesday is expected to provide crucial insights into the AI chip market and tech sector performance.
2. Federal Reserve Policy: Recent comments from Fed Chair Jerome Powell indicating that the central bank is in no hurry to cut interest rates have led to a reassessment of rate cut expectations. The yield on 10-year Treasuries rose to 4.46%, its highest level since early July, reflecting these shifting expectations .
3. Economic Data Releases: Upcoming reports on retail sales, housing starts, and consumer sentiment will offer further clues about the state of the U.S. economy.
Other Notable Market Movements
– Super Micro Computer (SMCI) saw its shares jump 13% on news that the company is expected to submit a plan for its delayed annual report, potentially avoiding a Nasdaq delisting .
– Bitcoin continued its volatile trading, hovering around $90,000 after reaching record highs above $93,000 last week. The cryptocurrency market remains buoyant on expectations of crypto-friendly policies from the incoming administration .
– Gold futures rose 1.5% to approximately $2,610 an ounce, rebounding slightly after recent losses due to a strengthening U.S. dollar .
Market Outlook
As we move further into the week, market participants will be watching closely for any signs of a sustained recovery from last week’s downturn. The performance of key tech stocks, particularly Nvidia, and any updates on federal policy regarding self-driving vehicles could be significant drivers of market sentiment.
Additionally, investors will be parsing every piece of economic data and Fed commentary for clues about the future direction of interest rates and overall economic health. With the holiday season approaching, retail sales figures will be particularly important in gauging consumer confidence and spending patterns.
In conclusion, while the market showed signs of stabilization on Monday, the mixed performance across major indexes suggests that investors remain cautious. The coming days will be crucial in determining whether this marks the beginning of a new upward trend or a temporary pause before further volatility.
