Chip stocks rally pushes S&P 500 and Nasdaq 100 to record highs, on positive economic data.

From Nasdaq: 2024-12-03 09:16:54

Stocks closed mixed on Monday, with the S&P 500 and Nasdaq 100 hitting new highs. Positive US economic data boosted the market, with the Nov ISM manufacturing index rising to 48.4 and Oct construction spending exceeding expectations. Chip stocks rallied, but Stellantis NV fell after its CEO’s unexpected resignation. Fed Governor Waller hinted at a rate cut in December.

Corporate news was a mix of positive and negative. Super Micro Computer surged after a misconduct probe, while Tesla rose on an upgrade. Stellantis NV and Upstart Holdings fell on negative reports. The US ISM manufacturing index and construction spending were stronger than expected. Fed comments were neutral for stocks.

Looking ahead, markets await the Nov ISM services index and Fed Chair Powell’s speech. Nonfarm payrolls and average hourly earnings data are expected on Friday. The chance of a rate cut at the December FOMC meeting stands at 78%. Overseas markets closed higher. Interest rates rose on corporate supply pressure but recovered on dovish Fed comments. European bond yields fell, and the ECB is expected to cut rates next week.

In stock movements, chip stocks led gains, with Tesla, cruise line operators, The Gap, Cloudflare, NextEra Energy Partners, Akamai Technologies, and Commercial Metals among the top performers. PG&E, Stellantis NV, Upstart Holdings, LendingClub, NU Holdings, Toast Inc, and SentinelOne closed lower. Earnings reports for 12/3 include Core & Main Inc, Donaldson Co Inc, Marvell Technology Inc, Okta Inc, Pure Storage Inc, and Salesforce Inc.



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