Stock Market Soars: S&P 500 and Nasdaq Hit Record Highs on December 3, 2024
Market Indexes Reach New Heights
On Tuesday, December 3, 2024, the U.S. stock market continued its impressive rally, with major indexes reaching new milestones. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) both closed at record highs, extending their gains from the previous day. The S&P 500 edged up 0.24%, while the tech-heavy Nasdaq Composite surged by 1.12%. However, the Dow Jones Industrial Average (^DJI) experienced a slight dip, closing down 0.29% from its recent all-time high.
Tech Stocks Lead the Charge
The market’s upward trajectory was primarily driven by a strong performance in the technology sector. Apple (AAPL) shares touched a new record, while other tech giants like Tesla (TSLA) and Meta (META) saw significant gains, both up more than 3%. The semiconductor industry also played a crucial role in the market’s ascent, with Nvidia (NVDA) and Broadcom (AVGO) contributing to the positive momentum.
Notable Stock Movements
Several individual stocks made headlines with substantial price movements:
1. Super Micro Computer (SMCI) surged an impressive 29% after an independent committee found no evidence of financial wrongdoing.
2. Tesla (TSLA) gained 3.5% following positive analyst reports and increased price targets.
3. Stellantis (STLA), the maker of Jeep, saw its shares sink after the unexpected resignation of CEO Carlos Tavares.
4. Intel (INTC) stock ended lower following the retirement announcement of CEO Pat Gelsinger.
Economic Indicators and Federal Reserve Outlook
The market’s positive performance was further bolstered by encouraging economic data. The November ISM manufacturing index rose to a 5-month high of 48.4, surpassing expectations of 47.5. Additionally, October construction spending increased by 0.4% month-over-month, outpacing the anticipated 0.2% growth.
Investors are closely monitoring the Federal Reserve’s stance on monetary policy. Fed Governor Christopher Waller made dovish comments, suggesting a potential rate cut at the December meeting. This statement has fueled optimism about a more accommodative monetary policy in the near future.
Upcoming Market Events
As we move further into December, several key events are on investors’ radars:
1. November Jobs Report: Scheduled for release on Friday, this report will be a crucial input for the Federal Reserve’s policy-making decisions.
2. Job Openings and Labor Turnover Survey (JOLTS): The October data, due today, will provide insights into the strength of the labor market.
3. Earnings Reports: Major companies like Salesforce (CRM), Marvell Technology (MRVL), and Okta (OKTA) are set to release their earnings after the market close today.
Global Market Influences
The U.S. market’s performance is also being influenced by global factors. Asian markets, particularly Japan’s Nikkei and Topix indices, rallied strongly, buoyed by gains in tech stocks. However, Chinese traders remained cautious following new U.S. restrictions on China’s access to critical components for chips and AI.
Looking Ahead: Market Expectations
As we progress through the final month of 2024, the stock market appears poised for continued growth. The S&P 500 is up over 25% year-to-date, while the Dow has gained nearly 20%. The tech-heavy Nasdaq has been the standout performer, with gains approaching 30% for the year.
Investors should remain vigilant, however, as several factors could impact market dynamics:
1. The upcoming jobs report could reset expectations for Federal Reserve rate cuts.
2. Political developments, including President-elect Donald Trump’s tariff threats against BRICS countries, may introduce volatility.
3. The ongoing performance of the technology sector, particularly in areas like AI and semiconductors, will likely continue to drive overall market trends.
In conclusion, while the stock market is ending the year on a high note, investors should stay informed about upcoming economic data releases and corporate earnings reports. These factors will play a crucial role in determining the market’s direction as we approach the end of 2024 and look towards the new year.
