Stocks rally on positive remarks from Fed Chair Powell, tech earnings, but tempered by weak data

From Nasdaq: 2024-12-04 18:13:17

Stocks rallied on Wednesday, with the S&P 500, Dow Jones, and Nasdaq 100 hitting new highs. Marvell and Salesforce reported strong earnings, lifting tech stocks. Fed Chair Powell’s positive comments on the economy boosted markets. However, weaker economic data and hawkish Fed comments tempered gains. Mortgage applications rose, but rates fell. Overseas markets were mixed.

Bond yields fell on weaker economic data and lower inflation expectations. The ECB is expected to cut rates in December. US stock movers included Nvidia, Amazon, Marvell, Salesforce, and Pure Storage, while Campbell’s and Foot Locker saw declines. Energy stocks tumbled as crude prices dropped. Microchip Technology paused its expansion plans. Earnings reports are expected from various companies on December 5th.

Key economic data showed mixed signals, with the US economy showing strength but facing challenges. Markets are focused on Friday’s nonfarm payrolls and interest rate decisions. Overseas markets had varied performances. Bond yields in Europe rose, while the Eurozone revised its PMI. Swaps are pricing in a rate cut by the ECB. Overall, markets are navigating economic data and earnings reports for direction.



Read more at Nasdaq: Stocks Rally as Powell Bullish on US Economy