Wall Street experienced another record-breaking day driven by technology stocks during a mixed trading session. The S&P 500 rose by 0.2%, setting a new record after reaching an all-time high last Friday. Meanwhile, the Dow Jones Industrial Average dropped 128 points, or 0.3%, and the Nasdaq composite saw a 1% increase. Super Micro Computer led the market with a remarkable 28.7% surge. This surge came after an internal investigation cleared the company of misconduct allegations, leading to a positive response from investors. The company announced plans to appoint a new chief financial officer and general counsel.
- Tech Stocks Propel Markets: The S&P 500 reached a record high, aided by gains in Microsoft (+1.8%) and Meta Platforms (+3.2%). Super Micro Computer surged by 28.7% following a positive internal investigation outcome.
- Sectoral Struggles: Automotive and retail stocks faltered. Stellantis dropped 6.3% after its CEO announced his departure, while PG&E fell 5% due to a stock offering plan.
- Global and Political Dynamics: Chinese markets rose on improved manufacturing data, while Trump’s tariff proposals had limited immediate market impact. The euro weakened against the dollar amidst France’s political tensions.
- Economic Indicators in Focus: Job market updates are anticipated, with economists forecasting hiring growth. Treasury yields remained stable at 4.19%, reflecting cautious optimism.
Prominent tech companies contributed significantly to the upward momentum. Microsoft posted a 1.8% gain, and Meta Platforms rose by 3.2%, both bolstering the S&P 500. Intel showed promise early in the session but ultimately fell by 0.5% following the announcement of CEO Pat Gelsinger’s retirement. Intel is actively searching for a replacement, with its chair emphasizing a commitment to restoring investor confidence. The company recently lost its spot in the Dow Jones Industrial Average to Nvidia, a company booming thanks to Wall Street’s enthusiasm for AI.
In other sectors, Stellantis faced challenges as its stock plummeted by 6.3% in Milan. The automaker announced CEO Carlos Tavares’s departure amidst declining sales and inventory issues. Other stocks, including PG&E, which dropped 5% after announcing plans to raise $2.4 billion through stock and preferred shares, also struggled. Retail stocks experienced mixed results despite expectations for a record Cyber Monday. Target’s stock fell by 1.2% following a disheartening holiday forecast, while Walmart saw a 0.2% increase due to a more optimistic outlook. Amazon benefited from Cyber Monday, climbing 1.4%.
President-elect Donald Trump’s recent tariff threats did not significantly impact the stock market. He proposed 100% tariffs against certain developing economies if they undermine the U.S. dollar. Although the U.S. dollar rose against several currencies, the euro’s decline against the dollar seemed more linked to political tensions in France than to tariff threats. Treasury yields remained steady, with the yield on the 10-year Treasury settling at 4.19%.
The manufacturing sector showed signs of contraction, though not as severe as anticipated by economists. This week, important updates on the job market are expected. Reports include October’s job openings, weekly unemployment benefits data, and the November jobs report. Economists predict an acceleration in hiring by U.S. employers, potentially influencing Federal Reserve’s interest rate decisions.
Globally, Chinese stocks led gains, driven by improving manufacturing conditions. Surveys indicated strong new orders and export orders, possibly linked to U.S. importers’ efforts to bypass potential tariff hikes by Trump. Indexes in Hong Kong and Shanghai rose by 0.7% and 1.1% respectively.
- Wall Street Journal: “S&P 500 Hits Record as Tech Stocks Rally”
- Reuters: “Super Micro Computer Surges After Clearing Allegations”
- Bloomberg: “Stellantis Faces Challenges Amid CEO Departure”
- CNBC: “U.S. Dollar Strengthens Against Euro Amid Global Tensions”