Stock Market Today: Major Indexes Poised for Weekly Losses as Post-Election Rally Fades
Market Overview: November 15, 2024
As of Friday, November 15, 2024, the U.S. stock market is facing downward pressure, with major indexes on track to post weekly losses. The post-election rally that recently pushed the markets to record highs has begun to lose steam, influenced by Federal Reserve Chairman Jerome Powell’s recent comments and shifting investor sentiment.
Current Performance of Major Market Indexes
As of early trading on November 15, 2024:
– The S&P 500 (^GSPC) is down 0.7%, with futures dropping over 0.5% before the bell. The index closed at 5,949.17 on Thursday, showing a 0.6% decline.
– The Dow Jones Industrial Average (^DJI) is down 0.4%, with futures sliding roughly 0.4% in pre-market trading. It closed at 43,750.86 on Thursday, falling 0.5% or 207.33 points.
– The Nasdaq Composite (^IXIC) is experiencing the steepest decline, down 1.3% in early trading. Nasdaq 100 futures were down 0.8% before the bell.
These movements indicate that all three major indexes are on pace to record weekly losses, marking a significant shift from the recent record highs.
Key Factors Influencing Market Trends
1. Fed’s Stance on Interest Rates: Chairman Jerome Powell’s recent comments have dampened expectations for immediate rate cuts. Powell stated that the Fed is “in no hurry to lower rates,” citing the economy’s current strength. This has led to a recalibration of market expectations, with the probability of a December rate cut dropping from 82.5% to 62.6%.
2. Post-Election Rally Reversal: The initial optimism surrounding President-elect Donald Trump’s policies is waning. The S&P 500 has already reversed one-third of its post-election gains.
3. Economic Data: Recent retail sales data came in stronger than expected, reinforcing the Fed’s cautious approach to rate cuts. This has led to an increase in the 10-year Treasury yield to 4.49%.
Major Stock News and Corporate Developments
– Tesla (TSLA): Shares are up 2% despite reports that the new administration may scrap the $7,500 electric vehicle tax credit.
– Applied Materials (AMAT): Down 7% following weaker-than-expected earnings.
– Disney (DIS): Up 3%, continuing its upward trend from previous sessions.
– Super Micro Computer Inc. (SMCI): Plummeted 11.4% on Thursday, marking it as a significant loser in the tech sector.
– Domino’s Pizza (DPZ) and Pool Corp. (POOL): Both stocks saw increases after Warren Buffett’s Berkshire Hathaway disclosed new positions in these companies.
Tech Sector Performance
Large-cap technology stocks are facing pressure, with Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) all falling more than 1% in early trading.
Upcoming Market Events to Watch
1. Federal Reserve Policy Meetings: Investors are closely watching for any signals regarding future rate cuts. Current market pricing indicates a 62% probability of a rate cut at the December meeting, down from 72% earlier.
2. Earnings Reports: With the earnings season ongoing, upcoming reports from major companies could significantly impact market sentiment.
3. Economic Data Releases: Upcoming economic indicators will be crucial in shaping the Fed’s decisions and market expectations.
Market Outlook
As we move towards the end of 2024, the stock market faces a period of uncertainty. The fading post-election rally, coupled with the Fed’s cautious stance on rate cuts, suggests that investors may need to adjust their expectations. The market’s reaction to upcoming economic data and corporate earnings will be critical in determining the short-term trajectory of major indexes.
Investors are advised to stay vigilant and diversified, as market volatility may persist in the coming weeks. The interplay between economic indicators, Fed policy, and corporate performance will continue to shape market dynamics as we approach the end of the year.
