Stock Market Today: S&P 500 Hits New Record as Nasdaq 100 Surges
Market Overview: December 4, 2024
On Wednesday, December 4, 2024, the U.S. stock market demonstrated mixed performance, with the S&P 500 and Nasdaq 100 reaching new heights while the Dow Jones Industrial Average experienced a slight decline. Investors are closely monitoring upcoming economic data releases and Federal Reserve commentary for insights into future monetary policy decisions.
Major Index Performance
As of the market close on December 4, 2024:
– The S&P 500 (SPY) edged up 0.05%, setting a new record high.
– The Nasdaq 100 (QQQ) advanced 0.31%, also reaching an all-time high.
– The Dow Jones Industrial Average (DIA) slipped 0.17%.
Why Is the Market Up Today?
Several factors contributed to today’s positive market sentiment:
1. Positive Corporate News: Companies like Palantir Technologies (PLTR) and AT&T (T) saw significant gains after announcing favorable business developments.
2. Fed Commentary: Recent statements from Federal Reserve officials, including Governor Kugler and San Francisco Fed President Daly, suggested a potential interest rate cut in December, boosting investor confidence.
3. Strong Labor Market: The October JOLTS job openings report showed a larger-than-expected increase to 7.744 million, indicating continued strength in the job market.
Key Stock Movers
Several stocks made notable moves today:
– Palantir Technologies (PLTR): Surged over 6% after receiving U.S. government authorization for two cloud services.
– AT&T (T): Climbed more than 4% following positive profit growth forecasts and a $20 billion share repurchase program announcement.
– Microchip Technology (MCHP): Fell 7% after announcing a plant closure in Arizona and lowering Q3 revenue guidance.
– Procter & Gamble (PG): Declined over 2% due to concerns about foreign exchange rates and logistics issues affecting Q2 results.
Upcoming Market Events
Investors should keep an eye on these upcoming events that could impact market performance:
1. November ISM Services Index: Expected to be released on December 5, with a forecast of 55.5.
2. Fed Chair Powell’s Speech: Scheduled for December 5 at a moderated discussion event in New York.
3. November Nonfarm Payrolls Report: Set for release on December 6, with expectations of 200,000 jobs added.
Earnings Reports to Watch
Key companies reporting earnings on December 4, 2024, include:
– Dollar Tree Inc (DLTR)
– Five Below Inc (FIVE)
– Hormel Foods Corp (HRL)
– PVH Corp (PVH)
– Synopsys Inc (SNPS)
– The Campbell’s Company (CPB)
Market Outlook
As we move further into December, historical trends suggest a potentially positive month for stocks. Since 1950, December has ranked as the third-best month for both the Dow and S&P 500, with average gains of 1.6% and 1.5%, respectively.
Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, commented, “On balance, we think there’s much to like about U.S. equities, despite a wall of worry that looms on the horizon. Inflation, interest rates, and earnings are supportive of a risk-on bias, and technological advances such as Gen AI continue to expand markets while pushing equities higher.”
Investors are particularly focused on the upcoming Federal Reserve meeting on December 17-18. Current market expectations indicate a 72% chance of a 25 basis point rate cut at this meeting, which could further fuel market optimism.
As we navigate through the final month of 2024, market participants should remain vigilant of economic data releases, corporate earnings, and geopolitical developments that could influence stock market performance. With the S&P 500 and Nasdaq 100 at record levels, investors will be watching closely to see if this bullish momentum can be sustained into the new year.
