Stock Market Recap: Tech Boost Drives S&P 500 and Nasdaq Higher on December 2, 2024
The U.S. stock market kicked off the final month of 2024 with mixed results, as technology stocks propelled the S&P 500 and Nasdaq Composite higher while the Dow Jones Industrial Average experienced a slight decline. This end-of-day market recap highlights the key movements and factors influencing today’s trading session.
Major Market Indexes Performance
As of the market close on Monday, December 2, 2024:
– The S&P 500 (SPX) gained 0.19%, reaching 6,043.57 points
– The Nasdaq Composite (IXIC) surged 0.85% to 19,380.43 points
– The Dow Jones Industrial Average (DJI) fell 0.23% to 44,807.84 points
The S&P 500 briefly touched an all-time high during the session, continuing the momentum from its best monthly performance of the year in November. The tech-heavy Nasdaq Composite outperformed other indexes, driven by strong gains in the technology sector.
Why Was the Market Up Today?
The market’s positive performance can be attributed to several factors:
1. Tech Sector Strength: Information technology stocks led the gains, with the sector advancing about 1%. This boost helped offset losses in other sectors, keeping the S&P 500 in positive territory.
2. Manufacturing Data: The Institute for Supply Management (ISM) reported that U.S. manufacturing activity improved in November, with the index rising to 48.7, beating analyst estimates. This data suggests a potential stabilization in the manufacturing sector.
3. Anticipation of Economic Data: Investors are looking ahead to a series of important economic reports due this week, including jobs data, which could influence the Federal Reserve’s decision on interest rates.
Notable Stock Movements
Several individual stocks made significant moves today:
– Tesla (TSLA) surged 2.2% after Stifel raised its target price on the stock to $411 from $287.
– Intel (INTC) gained 5.1% following the announcement of CEO Pat Gelsinger’s retirement.
– Super Micro Computer (SMCI) jumped nearly 25% after initiating a search for a new finance chief and addressing accounting concerns.
Upcoming Market Events
Investors should keep an eye on these key events in the coming days:
1. Jobs Data: The November nonfarm payrolls report, due on Friday, will be crucial in assessing the labor market’s health and potential implications for Fed policy.
2. Economic Indicators:
– Tuesday: October job openings report
– Wednesday: November private payrolls data
– Throughout the week: Multiple surveys of economic activity
3. Fed Speeches: Several Federal Reserve officials, including Chair Jerome Powell, are scheduled to make public appearances this week. Comments from Fed Governor Christopher Waller and New York Fed President John Williams are expected later today.
Market Outlook and Investor Sentiment
The market continues to ride the wave of optimism following the recent U.S. election results. Republican candidate Donald Trump’s projected victory and the potential for his party to control both houses of Congress have been seen as tailwinds for equities. Analysts anticipate that Trump’s policies on tax cuts, tariffs, and deregulation could boost corporate performance.
However, some concerns persist about the potential inflationary impact of these policies, which could influence the Federal Reserve’s approach to interest rate adjustments. Jay Woods, chief global strategist at Freedom Capital Markets, noted that an in-line jobs report on Friday could keep the Fed on track for a 25-basis-point rate cut at its upcoming meeting.
Conclusion
As we enter the final stretch of 2024, the stock market continues to show resilience, with technology stocks leading the charge. The S&P 500’s brief touch of an all-time high today reflects the ongoing bullish sentiment. However, investors remain cautious as they await crucial economic data and central bank commentary that could shape market direction in the coming weeks.
With a data-heavy week ahead and potential policy shifts on the horizon, market participants will be closely monitoring economic indicators and Fed communications for clues about the future trajectory of the U.S. economy and monetary policy.
