Stock Market Today: Investors Await Crucial Inflation Data Amid Mixed Performance
The stock market showed mixed performance on Wednesday, December 11, 2024, as investors eagerly awaited the release of crucial inflation data. This report aims to provide a comprehensive overview of current market indexes, upcoming market events, and major stock news.
Market Performance
As of the latest trading session:
– The S&P 500 edged up 0.10% to 6,040.95, showing resilience despite recent fluctuations.
– The Dow Jones Industrial Average (DJIA) dipped 0.12% to 44,194.33, continuing its four-day losing streak.
– The Nasdaq Composite gained 0.21%, reaching 19,728.64, buoyed by tech sector strength.
The mixed performance reflects investor caution ahead of the Consumer Price Index (CPI) report, a key indicator of inflation trends.
Upcoming Market Events
Consumer Price Index (CPI) Release: Economists anticipate the annual CPI inflation to rise from 2.6% in October to 2.7% in November. The core CPI, excluding volatile food and energy prices, is expected to remain steady at 3.3% year-over-year. This data will be crucial in shaping Federal Reserve policy decisions.
Federal Reserve Meeting: With Fed officials currently in a quiet period, the market is closely watching for signals about future interest rate movements. Expectations for a 25 basis point rate cut in December have risen to 86.1%, up from 78.1% a week ago, according to CME Group’s FedWatch tool.
Major Stock News
1. Alphabet (GOOGL, GOOG): Shares jumped after the company unveiled Willow, a quantum computing chip capable of performing computations in minutes that would take today’s fastest supercomputers billions of years.
2. Oracle (ORCL): The stock tumbled following lower-than-expected quarterly earnings and revenue, despite CEO Safra Catz citing “record level AI demand.”
3. Taiwan Semiconductor Manufacturing Co. (TSM): Reported a 34% jump in November sales, driven by strong AI demand. However, shares slid alongside other chip stocks.
4. Alaska Air Group (ALK): Shares soared to a three-year high after raising its current-quarter adjusted EPS outlook and announcing new international routes.
Market Outlook
Despite recent fluctuations, analysts remain optimistic about the market’s long-term prospects. Ryan Detrick, chief market strategist at Carson Research, predicts that 2024 “would go down as the best election year return ever,” with the S&P 500 Index having made 56 new all-time highs.
The current bull market, now 26 months old and up more than 70% from the October 2022 lows, shows potential for continued growth. Historical data suggests that bull markets reaching this stage have typically lasted for at least five years, with some extending beyond a decade.
JPMorgan’s 2025 outlook notes that “the prospect of deregulation and corporate tax cuts may finally give investors conviction to add to previously unloved areas of the market, like value and mid/small cap stocks.”
Conclusion
As the market awaits critical inflation data, investors remain cautiously optimistic. The mixed performance across major indexes reflects the delicate balance between growth prospects and economic uncertainties. With key events like the CPI release and the upcoming Federal Reserve meeting, market participants will be closely monitoring for signs of economic trends and potential policy shifts that could shape investment strategies in the coming months.
