Market Momentum Builds as Tech Stocks Soar
The US stock market experienced a significant upswing on Wednesday, driven primarily by the impressive performance of tech stocks. The Dow Jones Industrial Average climbed 0.5%, or over 200 points, while the S&P 500 added 0.5% to reach an all-time closing high. The tech-heavy Nasdaq Composite led the way, gaining over 1%.
Cloud and E-commerce Giants Lead the Charge
Cloud and e-commerce giant Salesforce surged 8% after its quarterly revenue beat boosted hopes for its artificial intelligence products. Other tech heavyweights, such as Apple and Nvidia, also saw significant gains, with Nvidia nearing its own record high.
Federal Reserve Chair Jerome Powell’s Cautious Optimism
In a speech at the New York Times DealBook Summit, Federal Reserve Chair Jerome Powell expressed cautious optimism about the US economy, stating that it is in “remarkably good shape.” Powell believes that the Fed can afford to be more cautious in its interest rate cutting path, given the economy’s strength. This sentiment has led to increased confidence among investors that the Fed will cut interest rates at its December meeting.
Private Payrolls Data Reveals Softening Labor Market
A reading on private payrolls showed that firms added 146,000 jobs in November, slightly below economist estimates. While the labor market is softening, it is not doing so dramatically. This data is one of several key economic releases this week, leading up to the all-important monthly jobs report on Friday.
UnitedHealth Group Halts Investor Day After CEO’s Fatal Shooting
UnitedHealth Group halted its investor day after the CEO of its insurance unit, Brian Thompson, was fatally shot in Manhattan on Wednesday morning. The company released a statement expressing shock and sadness at the passing of Thompson, who was a highly respected colleague and friend.
Megacap Tech Stocks Drive Market Rally
The so-called “Magnificent Seven” tech stocks, including Amazon, Apple, and Nvidia, have outperformed the S&P 500 this week, with each stock rising more than 2% in the past three trading days compared to the benchmark index’s less than 1% gain. These stocks have also seen stronger earnings revisions over the past month compared to the S&P 500.
Strategists Bet on Upside Economic Surprises
Strategists like Lori Calvasina of RBC Capital Markets are betting that consensus economic forecasts will once again be surprised to the upside by the US economy. Calvasina sees the S&P 500 ending next year at 6,600, driven by GDP growth of 2% to 3%.
President-elect Donald Trump Announces Nomination of Paul Atkins to SEC Chair
President-elect Donald Trump officially announced the nomination of Paul Atkins to be the next Chairman of the Securities and Exchange Commission. Atkins, a pro-cryptocurrency official, is seen as a streamliner of regulation and is knowledgeable in the industry.
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