Stock Market Recap: Major Indexes Hit Record Highs as Tech Surges on December 4, 2024
Market Overview: Why Was the Market Up Today?
On Wednesday, December 4, 2024, the U.S. stock market continued its bullish trend, with major indexes reaching new record highs. The surge was primarily driven by strong performances in the technology sector, buoyed by positive earnings reports and growing optimism surrounding artificial intelligence (AI) developments.
Key Market Movements
As of the latest trading session:
– The S&P 500 (^GSPC) climbed 0.3%, hitting a fresh all-time high.
– The Dow Jones Industrial Average (^DJI) rose 0.4%, or approximately 200 points, inching closer to its own record.
– The Nasdaq Composite (^IXIC) surged 0.9%, also reaching a new record high.
These gains mark the third consecutive day of record-setting performances for the S&P 500 and Nasdaq Composite, reflecting robust investor confidence in the wake of last month’s presidential election.
Tech Sector Leads the Charge
The technology sector was the primary catalyst for today’s market gains. Notable performers include:
– Salesforce (CRM): Shares soared 8% after the cloud software giant reported better-than-expected quarterly results and issued an optimistic full-year outlook, driven by strong demand for AI-related services.
– Marvell Technology (MRVL): The chipmaker’s stock skyrocketed 24% following an impressive earnings report.
– Nvidia (NVDA) and Amazon (AMZN): Both tech giants saw gains exceeding 2%.
– Microsoft (MSFT), Alphabet (GOOGL), and Tesla (TSLA) also posted positive movements.
Other Notable Stock Movements
– Roku (ROKU): Shares jumped over 12% after Needham suggested the streaming device maker could be an acquisition target.
– SAP (SAP): The enterprise software company climbed 4.1%, reaching an all-time high following a collaboration announcement with Amazon Web Services.
– GXO Logistics (GXO): The stock plunged 12.2% after CEO Malcolm Wilson announced plans to retire in 2025.
Upcoming Market Events and Federal Reserve Watch
Investors are eagerly awaiting Federal Reserve Chairman Jerome Powell’s scheduled appearance at a conference in New York later today. Market participants are seeking clues about the Fed’s approach to interest rate cuts in the coming months.
The critical November jobs report, slated for release on Friday morning, is another key event on the horizon. These events could provide insights into the Fed’s monetary policy direction ahead of its final rate-policy meeting of the year, scheduled for December 18.
Economic Indicators
Recent economic data released on December 4, 2024, includes:
– MBA 30-Year Mortgage Rate: Decreased to 6.69% from the prior 6.86%
– Mortgage Market Index: Rose to 213.9 from the previous 208
Looking Ahead: Market Expectations
The market’s current trajectory suggests growing confidence in potential interest rate cuts. Traders are pricing in nearly 74% odds of a 25 basis point cut at the Fed’s December 18 meeting, up from about 66% a week ago, according to the CME FedWatch tool.
As we move towards the end of 2024, investors will be closely monitoring economic indicators, corporate earnings, and Fed policy decisions to gauge the market’s direction in the coming weeks and into the new year.
In conclusion, the stock market’s robust performance on December 4, 2024, underscores the ongoing strength in the technology sector and overall positive investor sentiment. As major indexes continue to set new records, all eyes are on upcoming economic data and Fed commentary for further guidance on the market’s future trajectory.
