Just the Facts: Market Internals and Performance Data for November 11, 2024

The financial markets saw mixed but generally positive movement on November 11, 2024, as the S&P 500 closed above the 6,000 mark for the first time, signaling continued investor optimism. While the gains were modest for the S&P 500 and the Nasdaq Composite, small-cap stocks outperformed, fueled by a strong rally in the Russell 2000.

The trading day was marked by enthusiasm for sectors tied to economic growth under the incoming administration and a fear of missing out on further equity market gains, which contributed to sustained buying activity.

Performance Overview

The S&P 500 rose 0.1 percent to close at 6001, its first time surpassing this milestone. The Nasdaq Composite increased by 0.1 percent to finish at 19,298, while the Dow Jones Industrial Average led the large-cap indices with a 0.7 percent gain, closing at 44,293. Small-cap stocks surged, with the Russell 2000 jumping 1.4 percent, as investors displayed a preference for domestic growth-focused equities.

Trading volume showed divergence, with activity on the Nasdaq significantly above its average at 8,131 million shares compared to an average of 5,980 million. The NYSE experienced slightly lower-than-average trading volume at 968 million shares, compared to its average of 999 million. Advancing issues outnumbered decliners on both exchanges, with NYSE posting a 1,571-to-1,206 ratio and Nasdaq at 2,467-to-1,801.

Sector Highlights

The day featured strong relative performance in financial services and growth-focused areas, particularly in regional banking and consumer discretionary. Key sectors and asset classes with notable strength included:

US Natural Gas (+10.22 percent): Bolstered by colder weather forecasts and increased demand expectations.

Global X Lithium (+6.15 percent): Benefiting from a surge in electric vehicle-related demand for battery components.

Regional Banking Index (+3.11 percent): Optimism around the new administration’s potential pro-business policies helped financial stocks outperform.

Consumer Discretionary (+2.04 percent): Increased confidence in consumer spending played a role in the sector's strength.

Conversely, the day saw significant weakness in commodities and internationally sensitive sectors, reflecting a pullback in risk appetite for specific assets.

Gold Miners (-5.93 percent) and Junior Gold Miners (-5.23 percent): Declined sharply as investors shifted away from safe-haven assets.

Oil (-2.95 percent) and Gasoline (-2.67 percent): Continued concerns about slowing global demand pressured energy commodities.

Semiconductors (-2.24 percent): Dragged lower amid profit-taking and investor rotation out of high-performing tech.

Investor Sentiment and Outlook

The market's upward momentum reflects confidence in the economic outlook and optimism tied to anticipated fiscal and regulatory policies. However, the decline in key commodity-related sectors suggests that investors remain cautious about global growth prospects and inflation risks.

Market participants are likely to focus on upcoming economic reports, including this week's Consumer Price Index (CPI) and Producer Price Index (PPI) data, to gauge the Federal Reserve’s next moves on interest rates. With the S&P 500 achieving a major psychological milestone, further gains may hinge on economic clarity and earnings performance across key sectors.

Conclusion

Monday’s trading session highlights a market navigating optimism for domestic economic growth while grappling with global and sector-specific headwinds. The record-breaking performance of the S&P 500 underscores continued confidence in the equity markets, but the contrasting fortunes of growth-focused and commodity-related sectors reflect a complex investment landscape. As macroeconomic data and Fed commentary dominate the week ahead, investors will need to remain vigilant to assess the sustainability of current market trends.