On Monday, both the S&P 500 and the Nasdaq saw increases, with the benchmark index reaching a temporary all-time high, fueled by technology shares, while investors concentrated on a range of economic data set to be released this week.
The highlight of the week will be the nonfarm payrolls report for November, scheduled for Friday, which is a crucial indicator for assessing the condition of the labor market.
Jay Woods, the chief global strategist at Freedom Capital Markets, mentioned that a report aligning with expectations should maintain the Federal Reserve’s course to reduce interest rates by 25 basis points during its upcoming meeting.
“Last week, (the Fed) dismissed (inflation) figures that matched analyst forecasts, indicating that no landing is likely since they’re not achieving the 2% inflation target, while unemployment continues to be historically low.”
The data on job openings for October is expected on Tuesday, with private payrolls information for November to follow on Wednesday.
Investors significantly invested $12.78 billion into U.S. equity funds, marking the fourth consecutive week of net purchases. Conversely, they withdrew $1.17 billion and $267 million from Asian and European funds, respectively.
The financial sector experienced strong demand, attracting $2.65 billion in net purchases—its fifth consecutive weekly inflow. Additionally, investors favored funds in the consumer discretionary, technology, and industrials sectors, totaling $1.01 billion, $807 million, and $778 million, respectively.
Global bond funds saw inflows for the 49th consecutive week, with investors adding $8.82 billion to these funds.
Corporate bond funds enjoyed a net inflow of $2.16 billion, marking the largest weekly inflow in four weeks, while government bond and loan participation funds also experienced substantial purchases, totaling a net of $1.9 billion and $1.34 billion, respectively.
In the day’s data, the Institute for Supply Management (ISM) reported an improvement in U.S. manufacturing activity in November, and the final revision of the S&P manufacturing survey was adjusted upwards to 49.7, compared to an earlier figure of 48.8.
By 11:30 a.m. ET, the Dow Jones Industrial Average had declined by 102.81 points, or 0.23%, to 44,807.84, while the S&P 500 rose by 11.19 points, or 0.19%, to 6,043.57, and the Nasdaq Composite increased by 162.49 points, or 0.85%, to 19,380.43.
Most of the major megacap and growth stocks were higher, with Tesla leading the charge, climbing 2.2% following Stifel’s upgrade of its target price on the stock from $287 to $411.
Despite eight of the 11 major S&P sectors trading lower, around a 1% rise each in information technology, consumer discretionary, and communication services helped keep the benchmark index positive.
The S&P 500 and the blue-chip Dow achieved their strongest month in a year, culminating in an impressive November for U.S. equities.
The prospect of Republican candidate Donald Trump reclaiming the White House alongside his party gaining control of both congressional houses has provided a recent boost for equities.
Analysts anticipate that Trump’s policies regarding tax reductions, tariffs, and deregulation could promote enhanced corporate performance. However, concerns linger that his approaches might increase inflation and lead the Fed to temper its rate-cutting cycle.
This week is also rich in data that could reflect the economic landscape’s health, including several surveys on economic activity for the previous month.
Numerous Federal Reserve officials will make appearances throughout the week, including Fed Chair Jerome Powell. Remarks from Fed Governor Christopher Waller and New York Fed President John Williams are expected later in the day.
In other market movements, Intel surged 5.1% following the announcement of CEO Pat Gelsinger’s retirement. The broader semiconductor index saw a rise of 2.5%.
Super Micro Computer soared nearly 25% as the AI server manufacturer commenced the search for a new finance chief, following recommendations from a special committee reviewing the company’s accounting practices.
Declining stocks outnumbered advancing ones by a 1.43-to-1 ratio on the NYSE and by a 1.1-to-1 ratio on the Nasdaq.
The S&P 500 recorded 14 new 52-week highs and two new lows, while the Nasdaq Composite noted 89 new highs and 46 new lows.
