The US stock market exhibited resilience on Monday, closing in positive territory as optimism surrounding a potential slowdown in interest-rate hikes continued to bolster investor confidence. This marked the third consecutive week of gains for stocks, reflecting a buoyant market sentiment.
The S&P 500 (^GSPC) led the charge, wrapping up the day with a 0.7% gain. Similarly, the Dow Jones Industrial Average (^DJI) experienced an upward trajectory, climbing over 0.5%, translating to an approximate increase of 200 points. The Nasdaq Composite (^IXIC), dominated by tech stocks, outperformed with a robust 1% gain, concluding the initial day of the truncated trading week on a high note.
The sustained upward momentum can be attributed to signs of subdued inflation, fostering confidence among market participants that the Federal Reserve may have concluded its cycle of interest-rate hikes. Attention has now shifted to speculation about the timing of a potential rate cut, with traders factoring in a 30% probability of such a move as early as March.
Investors eagerly await the release of minutes from the Federal Reserve’s recent meeting scheduled for Tuesday, anticipating insights that could fuel the ongoing debate on the likelihood of a rate cut. However, with a sparse economic calendar and the impending closure of markets for Thanksgiving on Thursday, trading activity is expected to remain subdued.
In the spotlight for Tuesday are Nvidia’s financial results, following the chipmaker’s previous earnings report that propelled stocks higher amid the surge in the artificial intelligence (AI) hype cycle. Nvidia (NVDA) concluded Monday’s session at a record high, registering a gain of more than 2%, capturing the attention of market participants.
Microsoft (MSFT) also commanded attention by closing at an all-time high, spurred by developments surrounding OpenAI. The ouster of Sam Altman from OpenAI reverberated through Wall Street, triggering a weekend-long back-and-forth. Ultimately, Altman and fellow OpenAI co-founder Greg Brockman have chosen to join Microsoft, where they will lead a newly formed advanced AI research team, according to Microsoft CEO Satya Nadella.
These strategic moves within the tech sector underscore the dynamic nature of the market, where developments in AI and leadership changes can significantly impact stock performance.
In summary, the market’s buoyancy, coupled with the growing anticipation of a potential slowdown in interest-rate hikes, leaves investors cautiously optimistic about the evolving economic landscape in the coming weeks. As the week progresses, investors will closely monitor these key events, seeking cues for market direction amid the evolving landscape of economic indicators and corporate developments.
Source: Yahoo Finance
