Stock Market Today: S&P 500 and Nasdaq Rise as Markets Recover
Market Performance and Key Indexes
On Tuesday, November 19, 2024, the U.S. stock market showed signs of recovery after last week’s slump. The S&P 500 closed at 5,893.62, up 0.4%, while the Nasdaq Composite finished at 18,791.81, rising 0.6%. However, the Dow Jones Industrial Average (DJI) fell slightly by 0.1% to close at 43,389.60 .
This mixed performance comes as investors weigh recent hawkish statements from Federal Reserve Chair Jerome Powell regarding future rate cuts. The market is also anticipating a crucial week of third-quarter earnings reports from major retailers and tech companies.
Why Is the Market Up Today?
Several factors are contributing to the market’s upward trend:
1. Tech sector strength: Communication Services, Energy, and Consumer Discretionary sectors led the gains, with advances of 1%, 1.3%, and 0.9% respectively .
2. Positive corporate news: Tesla Inc. (TSLA) saw a significant 5.6% increase following reports of potential easing of regulations on self-driving cars .
3. Earnings anticipation: Investors are eagerly awaiting this week’s earnings reports from several retail giants and key tech companies .
4. Economic data: Market participants are closely monitoring upcoming economic data announcements that could impact Fed policy decisions.
Major Stock News and Market Movers
1. Tesla (TSLA): Shares surged 6% on news of potential federal framework for fully self-driving vehicles, benefiting from CEO Elon Musk’s close relationship with the president-elect .
2. Nvidia (NVDA): The AI chip giant’s stock fell 3% following reports of overheating issues with its new Blackwell chips. Investors are keenly awaiting Nvidia’s earnings report on Wednesday .
3. Super Micro Computer (SMCI): Shares jumped 13% as the company is expected to submit a plan for its delayed annual report, potentially avoiding a Nasdaq delisting .
4. Other tech giants: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN) saw gains, while Meta Platforms (META) experienced a slight dip .
Upcoming Market Events
1. Nvidia Earnings: The chip designer’s third-quarter earnings report on Wednesday is highly anticipated, as it has been a major driver of the market’s rally this year .
2. Retail Earnings: Major retailers including Walmart, Lowe’s Companies, and Target are set to report their earnings this week, providing insights into consumer spending trends .
3. Federal Reserve Policy: Investors continue to monitor Fed statements for clues on the pace of potential interest rate cuts in the coming months .
Market Outlook and Investor Sentiment
Despite the recent volatility, Wall Street remains relatively well-positioned as 2024 comes to a close. However, investors are adjusting their expectations regarding the Federal Reserve’s approach to interest rates. The yield on 10-year Treasurys rose to 4.46%, its highest level since early July, reflecting these changing expectations .
Bitcoin continues to attract attention, trading around $90,000 after reaching record highs above $93,000 last week. Investor optimism surrounding potential crypto-friendly measures from the new administration is fueling this surge .
As we move forward, market participants will be closely watching the performance of key sectors, upcoming earnings reports, and any signals from the Federal Reserve to gauge the market’s direction in the final weeks of 2024.
