Market Analysis

Record-Breaking Day for S&P 500 and Nasdaq as Tech Sector Soars

Dupoin UK · 03 Dec 20241.8K Views

The Nasdaq (^IXIC) and S&P 500 (^GSPC) reached record highs on Monday, starting December on a positive note after a strong finish to November. The S&P 500 rose 0.2%, extending its record-breaking trend, while the Dow Jones Industrial Average (^DJI) dipped by nearly 0.3% from its all-time high. The tech-driven Nasdaq Composite surged nearly 1%, with Apple (AAPL) shares also hitting a record. Other tech stocks, including Tesla (TSLA) and Meta (META), saw gains of more than 3%.

The S&P 500 and Dow enter December on a strong momentum, having ended November with their best monthly performance in a year, driven by optimism following President-elect Donald Trump's victory. Year-to-date, the S&P 500 has risen over 25%, the Dow is up almost 20%, and the Nasdaq has gained nearly 30%. However, shares in Stellantis (STLA) fell after CEO Carlos Tavares unexpectedly resigned, while Intel (INTC) saw a drop after CEO Pat Gelsinger announced his retirement from the struggling chipmaker.

Investors are now focusing on Friday's November jobs report, which is crucial for the Federal Reserve's policymaking, along with upcoming job openings and private payroll data. A surprising jobs report could alter expectations for future rate cuts that have supported the stock market this year. However, even with expectations for slower Fed easing, the stock market remains strong. Meanwhile, the dollar (DX=F) rose as investors evaluated Trump's latest tariff threats. The incoming president warned BRICS countries (Brazil, Russia, India, China, and South Africa) not to create an alternative to the US dollar, threatening 100% tariffs if they move away from it. Trump's remarks have already put markets on alert, with promises to impose significant new tariffs on Canada, Mexico, and China.

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