Stock Market Recap: Thanksgiving Eve Sees Mixed Performance Amid Tech Weakness

As the U.S. markets prepared for the Thanksgiving holiday, Wednesday, November 28, 2024, saw a mixed performance across major indexes. This end-of-day update provides a comprehensive look at the current market state, upcoming events, and significant stock movements.

Market Index Performance

The day’s trading session ended with a slight downturn for major indexes:

– The S&P 500 declined 0.38% to 5,998.74, breaking a seven-day winning streak.
– The Nasdaq Composite lost 0.6%, closing at 19,060.48.
– The Dow Jones Industrial Average slipped 138.25 points, or 0.31%, finishing at 44,722.06.

Despite the day’s losses, it’s worth noting that all three major indexes are still up for the week and hovering near all-time highs.

Key Market Drivers

1. Tech Sector Weakness: Large technology companies, which have been strong performers throughout the year, saw some profit-taking. Nvidia (NVDA), up over 173% in 2024, dropped more than 1% during the session.

2. Inflation Data: The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 0.2% in October and 2.3% year-over-year, aligning with economists’ expectations.

3. Holiday Trading: Trading volume was about 20% lower than average due to the approaching Thanksgiving holiday, potentially exacerbating market movements.

Major Stock News

Several notable companies made headlines due to earnings reports and stock movements:

1. Dell Technologies (DELL) and HP Inc. (HPQ) both saw significant declines, dropping over 12% and 11% respectively, following weak earnings guidance.

2. Meta Platforms (META) experienced a 0.8% decline, despite being up approximately 60% year-to-date.

3. Macy’s Inc. (M) executives rang the NYSE opening bell, celebrating the 98th Macy’s Thanksgiving Day Parade.

Upcoming Market Events

Investors should keep an eye on these upcoming events that could impact market performance:

1. Thanksgiving Holiday: U.S. stock markets will be closed on Thursday, November 28, for Thanksgiving and will close early at 1 p.m. EST on Friday, November 29.

2. Black Friday: The unofficial start of the holiday shopping season could provide insights into consumer spending trends.

3. End of November Trading: As the month concludes, the Dow is on track for its biggest monthly gain of 2024, up more than 7% in November.

Market Outlook

While Wednesday’s session saw some pullback, the overall market sentiment remains positive. The Dow and S&P 500 have recently reached all-time highs, and November has been a strong month for equities. However, investors should remain cautious due to several factors:

1. Potential for profit-taking in high-performing tech stocks.
2. Ongoing evaluation of inflation data and its impact on Federal Reserve policies.
3. Geopolitical tensions and their potential effects on global trade.

As we head into the holiday season, market participants will be closely watching consumer spending patterns and any signals from the Federal Reserve regarding future interest rate decisions.

Conclusion

The pre-Thanksgiving trading session highlighted the market’s current state of cautious optimism. While tech stocks faced some headwinds, the broader market remains near record levels. As investors digest the latest economic data and corporate earnings, the focus will shift to holiday consumer behavior and its implications for the economy. Stay tuned for further updates as we navigate through this crucial period for the financial markets.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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