In a moderately subdued trading session, Tuesday saw US stocks close higher as investors cautiously assessed the recent robust rally in November. The Dow Jones Industrial Average (^DJI) closed the day with a modest uptick of over 0.2%, and the tech-centric Nasdaq Composite (^IXIC) saw a gain of approximately 0.3%. The benchmark S&P 500 (^GSPC) recorded a more subdued increase of 0.1%.
As November draws to a close, market participants are deliberating whether a potential pullback is on the horizon. The month witnessed an impressive surge, propelling stocks towards their most substantial monthly performance in over a year.
This optimistic market sentiment is fueled by speculation that the Federal Reserve might have concluded its interest rate hikes. However, Tuesday’s conflicting views from Fed Governor Michelle Bowman and Fed Governor Christopher Waller injected uncertainty. Bowman expressed the opinion that the Fed might need to further raise rates to timely bring down inflation to the 2% target. On the other hand, Waller indicated growing confidence in the current rate levels, though he acknowledged the need for additional data. Waller’s comments prompted a drop in Treasury yields, with the 10-year yield (^TNX) falling approximately 5 basis points to hover around 4.34%, reminiscent of September levels.
Investors are proceeding with caution as they await two crucial sets of economic data scheduled for later in the week. Wednesday will see an update on third-quarter GDP, while Thursday’s release of the PCE reading on consumer inflation—the Federal Reserve’s preferred gauge—will shape expectations for future rate adjustments.
On the economic front, data from the Conference Board on Tuesday revealed a rise in consumer confidence for November. The Conference Board’s index surged to 102.0, up from a revised 99.1 in October. Despite this improvement, the Expectations Index lingered below 80 for the third consecutive month—a historical signal of an impending recession within the next year, according to the Conference Board.
Simultaneously, market participants are closely monitoring the performance of retailers following the commencement of the holiday shopping season with Black Friday. Cyber Monday saw a notable surge in online spending, reaching $12.4 billion, a 9.6% increase compared to the previous year, according to Adobe Analytics. The late-night shopping frenzy between 10 and 11 p.m. Eastern saw consumers spending $15.7 million every minute.
In the commodities market, oil prices experienced an upswing as the dollar weakened, thereby reducing prices for holders of other currencies. Anticipation of additional output cuts at this week’s delayed OPEC+ meeting further buoyed oil prices. Brent crude futures (BZ=F) settled just below $82 per barrel, while West Texas Intermediate (WTI) crude futures closed with a gain of over 2%, settling above $76. Investors are closely monitoring developments in the energy sector as global dynamics continue to influence oil prices.
In summary, US stocks close higher, wrapping up the trading day with a positive uptick in various indices.
Source: Yahoo Finance
