Stock Market Recap: Wall Street Extends Rally on November 11, 2024
Major Indexes Hit New Highs as Post-Election Enthusiasm Continues
The U.S. stock market continued its impressive rally on Monday, November 11, 2024, with major indexes reaching new record highs. The Dow Jones Industrial Average (DJI) surged over 300 points, or 0.7%, poised to close above 44,000 for the first time in history. The S&P 500 and Nasdaq Composite showed slight declines of 0.02% and 0.1% respectively, after reaching all-time highs in the previous week .
Key Highlights:
– Dow Jones Industrial Average: Up 0.7%, on track for a record close above 44,000
– S&P 500: Slightly down 0.02%, after breaking 6,000 points last week
– Nasdaq Composite: Down 0.1%, following recent record highs
The market’s continued strength can be attributed to several factors, including the recent presidential election results, expectations of a business-friendly regulatory environment, and positive economic indicators.
Sector Performance and Notable Movers
The financial sector led the day’s gains, with major banks posting significant increases. JPMorgan Chase (JPM) and Goldman Sachs (GS) were among the top performers in the Dow, rising 1.3% and 1.6% respectively. Bank of America (BAC) and Citigroup (C) also saw gains of over 2% each .
The technology sector showed mixed results, with Tesla (TSLA) standing out as a notable exception. The electric vehicle manufacturer’s stock soared more than 5%, continuing its post-election rally and pushing its market value above $1 trillion .
Cryptocurrency-related stocks experienced significant gains as Bitcoin reached a new all-time high above $82,000. Coinbase (COIN) and Marathon Digital Holdings (MARA) rallied 21% and 24% respectively, benefiting from expectations of a more crypto-friendly regulatory environment under the new administration .
Market Sentiment and Economic Indicators
Investor sentiment remains bullish following the election results and recent economic data. The University of Michigan’s preliminary consumer sentiment index for November came in at 73, surpassing the consensus estimate of 71 and improving from October’s final reading of 70.5 .
Lisa Shalett, Chief Investment Officer at Morgan Stanley Wealth Management, commented on the market’s performance: “The Republicans’ decisive win has ignited ‘animal spirits,’ despite already lofty expectations. Rather than viewing developments as a fundamental shift toward the reflationary, no-landing scenario, we see sentiment and liquidity-driven positioning for what it is, and we are maintaining our balanced stance” .
International Markets and Commodities
While U.S. markets continued to rally, Asian stocks faced headwinds. The Hong Kong Hang Seng Index tumbled 2.5%, with mainland Chinese property shares falling 3.9%. The disappointing reaction was attributed to Beijing’s latest stimulus package, which fell short of investor expectations .
In the commodities market, gold declined 0.5% to $2,669.69 per ounce, retreating further from last month’s record high. Oil prices also extended their declines from Friday, with Brent crude futures dropping 0.3% to $73.68 a barrel and U.S. West Texas Intermediate (WTI) futures losing 0.4% to $70.13 a barrel .
Upcoming Market Events to Watch
Investors should keep an eye on several key events in the coming days:
1. U.S. Consumer Price Index (CPI) data release on Wednesday, which could influence Federal Reserve policy decisions
2. Federal Reserve Chair Jerome Powell’s speech on Thursday
3. Ongoing third-quarter earnings reports from major companies
4. Developments in international trade relations, particularly with China
As the market continues to digest the implications of the recent election and upcoming economic data, volatility may persist. Investors are advised to stay informed and maintain a balanced approach to their portfolios.
In conclusion, the U.S. stock market’s post-election rally shows no signs of slowing down, with major indexes reaching new highs and investor sentiment remaining positive. However, as always, it’s important for investors to remain vigilant and consider both the opportunities and risks present in the current market environment.
