Markets Wrap: S&P 500 Hits Record Close Amid Fed Rate Cut Bets

Stock Market Wrap

Markets Wrap: S&P 500 Hits Record Close Amid Fed Rate Cut Bets

Dec 06, 2024

Market Overview:

The S&P 500 and Nasdaq Composite climbed to new records on Friday, buoyed by better-than-expected November jobs data. The S&P 500 rose 0.25% to 6,090.27, while the tech-heavy Nasdaq Composite advanced 0.81% to 19,858.77, supported by gains in Tesla, Meta Platforms, and Amazon. However, the Dow Jones Industrial Average slipped 0.28% to 44,642.52.

For the week, the S&P 500 gained 0.96%, and the Nasdaq rose 3.3%, marking their third consecutive positive week, while the Dow lost 0.6%.

The labor report revealed that nonfarm payrolls grew by 227,000 in November, exceeding estimates of 214,000 and reflecting a significant rebound from October’s revised gain of 36,000. The unemployment rate edged higher to 4.2%, as expected, signaling a moderating labor market rather than a sharp decline.

This “Goldilocks” jobs report, with its balance of growth and softening, boosted expectations for a Federal Reserve rate cut in December. Fed funds futures data suggest an 85% likelihood of a 25 basis-point reduction. However, market focus remains on next week’s Consumer Price Index report, as inflation trends will be pivotal for the Fed’s decision-making.

Treasury yields declined, with the 10-year yield down three basis points to 4.15%, while the Bloomberg Dollar Spot Index edged up 0.2%.

Corporate News:

FanDuel Inc. & DraftKings Inc.: US senators urged the Federal Trade Commission and the Department of Justice to investigate alleged anti-competitive practices by both companies.
Lululemon Athletica Inc.: Raised its full-year outlook due to robust overseas sales, showcasing its resilience amid rising competition and slower consumer spending.
DocuSign Inc.: Increased its revenue forecast for the year, with analysts praising early contract renewals.
Petco Health and Wellness Co.: Surpassed third-quarter Ebitda estimates. Analysts noted signs of stabilization, with comparable sales also exceeding expectations.
Smith & Wesson Brands Inc.: Reported second-quarter earnings that fell short of forecasts.
Ulta Beauty Inc.: Boosted its annual projections for comparable sales and earnings per share after strong third-quarter performance.
Victoria’s Secret & Co.: Increased its outlook following better-than-expected third-quarter sales, driven by positive early reactions to holiday merchandise.
Aviva Plc: Reached a preliminary agreement to acquire Direct Line Insurance Group Plc for £3.6 billion ($4.6 billion), a move set to establish the UK’s largest motor insurer.

*All data in this blog is sourced from reputable media outlets such as CNBC, Yahoo Finance, and Bloomberg. If any content infringes on copyright, please notify us for immediate removal.