Stock Market Today: Wall Street Seeks Recovery Amid Mixed Signals
Market Overview
On Monday, November 18, 2024, U.S. stock futures are trading mixed as investors digest last week’s sharp sell-off and look ahead to a busy week of earnings reports and economic data releases. The market is attempting to recover from its worst weekly performance since September, with the S&P 500 and Nasdaq Composite losing 2.1% and 3.2%, respectively, last week.
As of 10:03 AM EST, the Dow Jones Industrial Average (DJI) is down 0.1%, while the S&P 500 (SPX) is flat, and the Nasdaq Composite is fractionally higher. The recent market downturn can be attributed to concerns about future monetary policy, potential economic slowdown, and Federal Reserve Chair Jerome Powell’s cautious approach to rate cuts.
Current Market Performance
Last week’s disappointing performance saw all three major stock indexes decline:
– Dow Jones Industrial Average: Down 1.2%
– S&P 500: Down 2.1%
– Nasdaq Composite: Down 3.2%
The tech-heavy Nasdaq Composite finished at 18,680.12 on Friday, tumbling 2.2% or 427.53 points, closing below the crucial 19,000 level for the first time since November 6. The S&P 500 slid 1.3% to finish at 5,870.62, with eight out of 11 broad sectors ending in negative territory.
Upcoming Market Events
Investors are closely watching several key economic reports and earnings releases this week:
1. Economic Data:
– November’s S&P Global Manufacturing PMI and Services PMI (Thursday)
– October Existing Home Sales Change report (Thursday)
– Michigan Consumer Sentiment Index for November (Friday)
2. Earnings Reports:
– Nvidia (NVDA) – Wednesday (highly anticipated)
– Palo Alto Networks (PANW)
– Walmart (WMT)
– Target (TGT)
– Lowe’s (LOW)
– Nio (NIO)
– Snowflake (SNOW)
Major Stock News
1. Nvidia (NVDA): Shares are down 3% following reports of overheating issues with the company’s new Blackwell chips. Investors are eagerly awaiting Nvidia’s earnings report on Wednesday, which will offer insights into the demand for its AI chips.
2. Tesla (TSLA): Up 6% on reports that President-elect Donald Trump’s transition team is planning a federal framework for fully self-driving vehicles. The stock has gained 40% since election day, as investors anticipate benefits from CEO Elon Musk’s close relationship with the president-elect.
3. Super Micro Computer (SMCI): Shares are up 13% following reports that 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) are mostly higher, while Meta Platforms (META) is slightly down.
Market Indicators
– The fear-gauge CBOE Volatility Index (VIX) jumped 12.8% to 16.14 on Friday, its highest since November 5.
– The U.S. 10-year treasury yield is up, floating near 4.435%.
– WTI crude oil futures are trending higher, hovering near $67.23 per barrel.
Global Market Outlook
European markets opened mixed on Monday, focusing on several economic releases, including the U.K.’s latest inflation report and Euro Zone’s Consumer Price Index. In Asia, most indices were down as traders await key economic reports from the region, particularly Japan’s trade data on Wednesday and inflation figures on Friday.
As Wall Street looks to recover from last week’s slump, investors remain cautious amid mixed signals from the market. The upcoming earnings reports, especially Nvidia’s, and economic data releases will likely play a crucial role in determining market sentiment in the coming days. Traders are advised to stay vigilant and monitor these key events closely as they navigate the current market landscape.
