Stock Market Today: S&P 500 and Nasdaq Hit New Records Amid Tech Rally
Market Performance and Key Indexes
The stock market continued its bullish trend on Tuesday, December 3, 2024, with major indexes showing mixed results. The S&P 500 and Nasdaq Composite reached new all-time highs, driven by a strong performance in the technology sector. As of 9:35 a.m. Eastern time, the S&P 500 was virtually flat after setting its 54th record high of the year on Monday. The Dow Jones Industrial Average edged up by 5 points, or less than 0.1%, while the Nasdaq composite slightly decreased by 0.1% from its record close the previous day.
Why Is the Market Up Today?
Several factors contributed to the market’s positive performance:
1. Tech Stock Rally: Technology companies continued to lead the market, with chip stocks and other tech-related shares boosting investor confidence.
2. Economic Data: The November ISM manufacturing index rose to a five-month high of 48.4, surpassing expectations of 47.5. Additionally, October construction spending increased by 0.4%, beating forecasts of 0.2%.
3. Federal Reserve Outlook: Investors are optimistic about potential interest rate cuts, with the market pricing in a 75% chance of a rate reduction at the Fed’s next meeting in two weeks.
Major Stock News
1. AT&T (T): The telecommunications giant saw a 5% gain after raising its full-year profit forecast and announcing a $10 billion stock buyback plan.
2. U.S. Steel (X): Shares fell 7.9% following President-elect Donald Trump’s reiteration that he would not allow Japan’s Nippon Steel to acquire the iconic American steelmaker.
3. Tesla (TSLA): The electric vehicle manufacturer’s stock dropped 1.4% after a Delaware judge reaffirmed a ruling requiring the company to revoke Elon Musk’s multibillion-dollar pay package.
4. Super Micro Computer (SMCI): The server maker’s shares surged over 28% after an independent review found no evidence of misconduct by management or the board.
Upcoming Market Events
Investors should keep an eye on these key events that could impact the market in the coming days:
1. Job Openings Report: The number of job openings for October will be released, with economists expecting a slight increase from the previous month.
2. Federal Reserve Chairman’s Speech: Jerome Powell is scheduled to speak at an event on Wednesday, which could provide insights into the Fed’s monetary policy direction.
3. November Jobs Report: The highly anticipated monthly jobs report will be released on Friday, with economists estimating an increase of 200,000 jobs in November.
International Market Developments
Global markets showed mixed results:
1. Asian Markets: Japan’s Nikkei 225 jumped 1.9%, while Hong Kong’s Hang Seng Index rose 1%, and Shanghai’s Composite Index gained 0.4%.
2. European Markets: France’s CAC 40 increased by 0.2%, despite ongoing concerns about political tensions in Paris.
3. China-US Relations: Trade tensions escalated as China announced a ban on exports of gallium, germanium, and other high-tech materials to the United States, in response to recent U.S. export controls on Chinese technology companies.
Market Outlook
As the stock market continues to reach new heights, investors remain cautiously optimistic. The upcoming jobs report and Federal Reserve decisions will be crucial in determining the market’s direction in the short term. Additionally, ongoing geopolitical tensions and trade relations between the U.S. and China could impact market sentiment.
In conclusion, the stock market today demonstrates resilience and strength, particularly in the technology sector. However, investors should remain vigilant and monitor upcoming economic data and policy decisions that could influence market trends in the coming weeks.
