Stock Market Today: Futures Slip as December Trading Begins
Major Indexes Retreat After Strong November Performance
As of Monday, December 2, 2024, U.S. stock futures are showing a slight decline, signaling a cautious start to the final month of the year. This comes on the heels of a robust November, which saw significant gains across major market indexes.
S&P 500 futures were down 0.13%, Nasdaq 100 futures decreased by 0.17%, and Dow Jones Industrial Average futures slipped by 19 points as of early morning trading. These minor setbacks follow an impressive month where the Dow and S&P 500 recorded their best performances of 2024.
November’s Market Rally: A Post-Election Surge
November proved to be a stellar month for the stock market, largely driven by a strong post-election rally following President-elect Donald Trump’s victory. The Dow Jones surged 7.5%, while the S&P 500 gained 5.7%, marking their best monthly performances of 2024. The Nasdaq Composite wasn’t far behind, posting a 6.2% increase for the month.
Notably, both the Dow and S&P 500 reached new all-time intraday and closing highs during Friday’s shortened trading session. The Dow briefly surpassed the 45,000 mark for the first time in history, underscoring the market’s bullish sentiment.
Small-Cap Stocks Shine Amid Tax Cut Expectations
Small-cap stocks emerged as significant winners in November, with investors anticipating potential benefits from Trump’s proposed tax cuts. The Russell 2000, a key small-cap index, surged more than 10% in November, also marking its largest monthly gain of the year.
Key Economic Data and Events to Watch
As December trading begins, investors are closely monitoring several important economic indicators and events:
1. Manufacturing and Construction Data: Today’s release of the S&P final U.S. Manufacturing Purchasing Managers’ Index (PMI) and Construction Spending reports will provide insights into the economy’s health.
2. Labor Market Reports: A series of closely watched labor data is expected later in the week, including the U.S. Unemployment Rate.
3. Federal Reserve Speeches: Investors will be tuning in to speeches from Federal Reserve Governor Christopher Waller and New York Fed President John Williams for potential clues about monetary policy direction.
4. Corporate Earnings: Several major companies are set to release their quarterly results this week, including Salesforce (NYSE: CRM), Marvell (NASDAQ: MRVL), ChargePoint (NYSE: CHPT), Chewy (NYSE: CHWY), and Zscaler (NASDAQ: ZS).
Global Market Trends and Influences
While U.S. futures show a slight decline, Asian markets demonstrated strength on Monday. The Hang Seng Index in Hong Kong gained 0.65%, while Japan’s Nikkei and Topix indices closed higher by 0.80% and 1.27%, respectively. This positive performance was attributed to strong manufacturing data from China and increased capital expenditure by Japanese firms.
In contrast, European markets opened lower, with France’s CAC 40 falling 0.77% amid ongoing political volatility. Germany’s DAX was down 0.15%, while the U.K.’s FTSE 100 remained flat.
Looking Ahead: Market Expectations and Potential Catalysts
As we enter the final month of 2024, market participants are weighing several factors that could influence trading:
1. Year-End Rally: Historically, the last two weeks of December and the first two weeks of January have been favorable for stocks, potentially setting the stage for further gains.
2. Political Developments: Investors will be closely watching any policy announcements or indications from the incoming Trump administration that could impact markets.
3. Fed Policy: With Fed Chair Jerome Powell set to speak later in the week, any hints about future monetary policy could sway market sentiment.
4. Corporate Performance: As earnings season continues, strong results could provide additional support for the market’s upward trajectory.
As investors navigate the final stretch of 2024, the stock market’s performance in December will be crucial in determining whether the year’s impressive gains can be maintained or extended. With a mix of optimism from recent rallies and caution due to global economic uncertainties, market participants will need to stay vigilant and adaptable in the coming weeks.
