Stock Market Recap: Why Was the Market Up Today? – November 18, 2024
Major Indexes Rebound as Investors Eye Nvidia Earnings
The stock market showed signs of recovery on Monday, November 18, 2024, following last week’s decline. Investors are closely watching upcoming earnings reports, particularly from AI-chip leader Nvidia, while also digesting recent comments from Federal Reserve Chairman Jerome Powell.
As of market close:
– The S&P 500 (SPX) rose 0.06% to 5,874.17
– The Nasdaq Composite (IXIC) gained 0.20% to 18,717.933
– The Dow Jones Industrial Average (DJI) dipped slightly by 0.03% to 43,431.89
Tech Sector Leads the Charge
The technology sector played a significant role in today’s market performance. Tesla (TSLA) shares surged by 8% following reports that President-elect Donald Trump’s team is working on easing regulations for self-driving vehicles. This news boosted investor confidence in the electric vehicle and autonomous driving space.
However, Nvidia (NVDA) faced a 2% decline after The Information reported potential overheating issues with the company’s Blackwell AI chips when connected in servers. Despite this setback, the market eagerly awaits Nvidia’s earnings report, scheduled for release on Wednesday, which is expected to provide crucial insights into the demand for AI chips.
Market Sentiment and Federal Reserve Outlook
Last week’s market downturn was largely attributed to Federal Reserve Chair Jerome Powell’s comments indicating that the central bank is “not in a hurry” to cut interest rates. The current federal funds rate stands at 4.50-4.75%, down from the 23-year high of 5.25-5.5% seen in mid-September.
Investors are now adjusting their expectations, with the CME FedWatch tool showing a 62% probability of another 25 basis point rate cut in December. Market participants remain hopeful for a full 1% reduction in the lending rate throughout 2024.
Upcoming Market Events and Earnings Releases
This week’s market performance will be heavily influenced by several key events and earnings reports:
1. Nvidia (NVDA) Earnings: Set to be released on Wednesday, this report is crucial for gauging the health of the AI chip market.
2. Retail Sector Earnings: Major retailers including Walmart (WMT), Target (TGT), and Ross (ROST) are scheduled to report their financial results.
3. Palo Alto Networks (PANW) Earnings: The cybersecurity giant’s report will provide insights into the tech sector’s performance.
4. Economic Data Releases:
– China’s loan prime rate (Wednesday)
– Japan’s trade data (Wednesday) and October headline inflation numbers (Friday)
– Australia’s central bank meeting minutes (Tuesday)
Global Market Overview
European markets showed mixed performance on Monday, with the pan-European Stoxx 600 down 0.07%. Asian markets were also mixed, with South Korea’s Kospi rising 2.16%, led by a 5.98% increase in Samsung Electronics. Japan’s Nikkei 225, however, fell 1.09% to close at 38,220.85.
Looking Ahead: Market Expectations
As we move further into the week, investors will be closely monitoring earnings reports and economic data releases. The technology sector, particularly AI-related stocks, continues to be a focal point for market participants. Additionally, any further comments from Federal Reserve officials regarding monetary policy could significantly impact market sentiment.
The recent market volatility underscores the importance of staying informed about global economic trends, corporate earnings, and policy decisions. As always, investors are advised to maintain a diversified portfolio and consider long-term strategies in the face of short-term market fluctuations.
