Stock Market Today: S&P 500 and Nasdaq Poised for Fresh Highs as Tech Rallies
Market Indexes Surge Ahead of Fed Chair Powell’s Speech
As of Wednesday, December 4, 2024, the U.S. stock market is poised for another day of gains, with technology stocks leading the charge. Futures for major indexes are pointing upward, signaling potential record highs for the S&P 500 and Nasdaq Composite. This positive momentum comes as investors eagerly await Federal Reserve Chair Jerome Powell’s speech later today, which could provide crucial insights into the central bank’s interest rate plans.
Current Market Performance
As of the market open:
– S&P 500 (ES=F): 6,079.75, up 16.50 points (+0.27%)
– Dow Jones Industrial Average (YM=F): 44,995.00, up 187.00 points (+0.42%)
– Nasdaq 100 (NQ=F): 21,415.25, up 133.75 points (+0.63%)
The S&P 500 and Nasdaq Composite both reached new all-time closing highs in the previous session, extending the robust rally that has characterized the market since the U.S. presidential election last month.
Tech Sector Leads the Charge
Technology stocks are at the forefront of today’s market optimism. Notable pre-market movers include:
– Salesforce (CRM): Up 13% following strong quarterly results and increased AI product adoption
– Okta (OKTA): Gaining on positive earnings report
– Marvell Technology (MRVL): Rising after well-received financial results
These tech gains are contributing significantly to the overall market momentum, particularly boosting the Nasdaq futures.
Anticipation Builds for Fed Chair Powell’s Speech
Investors are keenly focused on Federal Reserve Chair Jerome Powell’s upcoming appearance in New York. Market participants are looking for clues about the possibility of interest rate cuts in the near future. The central bank’s December 18 meeting is now widely expected to result in a rate cut, with CME FedWatch tool indicating a 74% probability of a 25 basis point reduction.
Economic Data in Focus
Several key economic indicators are on the horizon:
1. ADP private payrolls report (December 6)
2. Monthly jobs report (December 8)
3. U.S. job openings data (released December 3, showing a moderate increase in October)
These reports will be crucial in assessing the labor market’s health and could influence the Fed’s decision-making process regarding interest rates.
Global Market Influences
While U.S. markets are showing strength, international factors are also at play:
– South Korean stocks: The iShares MSCI South Korea ETF (EWY) dropped 3% following President Yoon Suk Yeol’s brief declaration of martial law
– Political turmoil in France: Investors are watching a no-confidence vote that could potentially bring down the government
Corporate News Impacting the Market
Several major companies are making headlines:
– Tesla (TSLA): Shares down 1.5% after reporting a 4.3% year-on-year decline in China-made EV sales for November
– U.S. Steel (X): Stock fell 7.9% after former President Donald Trump reiterated opposition to Nippon Steel’s planned $15 billion acquisition
Looking Ahead: Market Expectations
As the market continues its upward trajectory, analysts are cautiously optimistic but warn of potential overvaluation risks. Patrick Kaser, portfolio manager at Brandywine Global, notes, “There’s a lot of momentum and people are looking for reasons to be optimistic. The flip side is that at some point, everybody’s expecting good things and valuations are not supportive of anything other than this good scenario.”
Conclusion: A Pivotal Day for Market Direction
Today’s market performance, coupled with Fed Chair Powell’s speech, could set the tone for the remainder of 2024. Investors should closely monitor these developments, as they may provide critical insights into the market’s trajectory and the Federal Reserve’s monetary policy plans for the coming months.
