Market Pulse: A Day-by-Day Breakdown of This Week's Financial Headlines

As we navigate the dynamic landscape of the financial markets, each trading day brings its own unique story, shaped by economic data, corporate earnings, and broader macroeconomic themes. This week was no exception, as investors grappled with shifting sentiment driven by geopolitical tensions, mixed corporate results, and evolving expectations for monetary policy. From sector rotations to bond market moves, each day presented opportunities and challenges, offering a window into the forces driving market activity. In this day-by-day recap, we’ll break down the key events and trends that defined the week, helping you stay informed and connected to the heartbeat of the market.

Monday, November 18

Monday's trading session saw the major indices close with solid gains, as the S&P 500 rose 0.4%, the Nasdaq Composite advanced 0.6%, and the Russell 2000 edged up 0.1%. The day began with subdued activity but picked up momentum as Treasury yields moved lower, with the 10-year yield dropping to 4.41%, one basis point below Friday’s close. This decline in yields, along with buy-the-dip interest following last week’s consolidation, fueled the day’s upside bias.

Mega-cap stocks and semiconductor names contributed to the gains, although NVIDIA (-1.3%) was an outlier, slipping on reports of overheating issues with its AI chips. Tesla surged 5.6%, extending its rally on reports that the Trump administration may ease regulations on self-driving cars. Tesla’s strength lifted the consumer discretionary sector (+0.9%) and continued its impressive post-election run, up nearly 38% since November 5.

The energy sector (+1.0%) was the top performer, benefiting from a 3.2% rise in WTI crude oil prices to $69.18 per barrel and a 5.3% increase in natural gas prices. Broad-based buying interest saw nine out of 11 sectors finish higher, though the health care sector lagged. Eli Lilly (-2.6%) weighed on the sector amid reports that some Republican Senators might support Robert F. Kennedy Jr.'s nomination for Secretary of Health and Human Services, adding political uncertainty to the space.

In economic data, the November NAHB Housing Market Index rose to 46, exceeding expectations and signaling slight improvement in homebuilder sentiment. Overseas markets had a mixed performance, with Europe showing modest gains led by the FTSE (+0.6%) and Asia closing mostly lower, with the Nikkei down 1.1%. Commodities had a strong session, highlighted by a $43.20 jump in gold prices to $2613.20 and a 2.16-point rise in crude oil.

Tuesday, November 19

Tuesday’s trading session started on a cautious note as geopolitical tensions weighed on market sentiment. Concerns arose following reports that President Putin had lowered Russia's threshold for using nuclear weapons, Ukraine had launched U.S.-made missiles into Russia, and Russian Foreign Minister Lavrov labeled the attack an "escalation signal." Despite the early jitters, stocks quickly rebounded as investors brushed off fears, and the major indices closed mostly higher. The S&P 500 gained 0.4%, the Russell 2000 rose 0.8%, and the Nasdaq Composite led with a 1.0% increase.

The bond market remained calm despite the geopolitical developments, which helped stabilize equities. The 2-year Treasury yield dipped one basis point to 4.27%, while the 10-year yield fell four basis points to 4.38%. This lack of panic in fixed-income markets contributed to the market's resilience, allowing investors to focus on earnings and sector performance.

Defense stocks saw gains as geopolitical tensions bolstered interest in the sector, with Boeing (+1.2%) standing out as a Dow leader. Walmart (+3.0%) was another influential winner, benefitting from strong earnings results. Additionally, mega-cap stocks and chipmakers were favored, with the Vanguard Mega Cap Growth ETF (MGK) rising 1.0% and the PHLX Semiconductor Index (SOX) climbing 0.6%. These gains highlighted continued investor appetite for growth and technology.

Economic data painted a mixed picture. October Housing Starts came in at 1.311 million, below the 1.340 million consensus, while Building Permits were also softer at 1.416 million versus 1.441 million expected.

Overseas markets were mixed, with Europe’s major indices declining (DAX -0.7%, CAC -0.7%, FTSE -0.1%) while Asia saw gains (Nikkei +0.5%, Hang Seng +0.4%, Shanghai +0.7%). In commodities, gold rose sharply, gaining $17.80 to $2631.00, while crude oil edged higher, settling at $69.25.

Wednesday, November 20

On Wednesday, the stock market had a mixed performance but managed to close near its session highs after a late-afternoon rally. The S&P 500 finished less than a point higher, recovering from a 1.0% decline earlier in the session. Similarly, the Nasdaq Composite pared a 1.4% intraday loss to close just 0.1% lower, while the Dow Jones Industrial Average gained 0.3%, bouncing back from a 0.4% decline. The recovery was supported by broad-based buying momentum in the afternoon, particularly after the bond market closed.

Treasury yields played a key role in market dynamics. Early in the session, yields dipped as geopolitical tensions flared following reports that Ukraine fired UK-made missiles into Russia, sparking safe-haven buying. However, this reversed as the session progressed, with the 10-year yield rising four basis points to 4.41% and the 2-year yield climbing three basis points to 4.30%. Fed Governor Bowman added to the shift by signaling a cautious approach to lowering policy rates. Meanwhile, weak demand at a $16 billion 20-year bond auction added to the upward pressure on yields.

Weakness in mega-cap stocks weighed on broader market performance throughout the day. Retailers also underperformed, with Target plummeting 21.4% after issuing disappointing guidance. Sector performance was mixed, with health care (+1.2%) and energy (+1.0%) leading gains, while consumer discretionary (-0.6%), financials (-0.3%), and information technology (-0.2%) were the laggards. This rotation reflects a cautious market tone, favoring defensive sectors over higher-risk, growth-oriented areas.

Economic data offered mixed signals. Weekly mortgage applications increased 1.7%, with purchase and refinance applications both rising 2%. However, crude oil inventories showed a modest build of 545,000 barrels, pressuring oil prices slightly, with crude settling at $68.76. Overseas, European markets closed modestly lower, while Asian markets were mixed, with the Shanghai Composite gaining 0.7% and the Hang Seng rising 0.2%.

Thursday, November 21

Thursday's trading session began on a shaky note, with early weakness in NVIDIA (NVDA) following its Q3 earnings report. Although NVDA's revenue growth rate showed a slight deceleration, the company impressed with its commentary on "staggering" demand for its Blackwell chip. After an initial dip due to profit-taking, NVDA recovered, rising 0.5% by the close. Despite early weakness in NVDA and other mega caps, the broader market displayed a positive bias throughout the session, with money rotating into other areas.

The major indices closed near their best levels of the day. The S&P 500 gained 0.5%, the Dow Jones Industrial Average rose 1.1%, and the Russell 2000 outperformed with a 1.7% increase. The Nasdaq Composite, weighed down by weakness in mega caps like Alphabet (GOOG), ended fractionally higher. Broader buying activity pushed the Invesco S&P 500 Equal Weight ETF (RSP) up 1.3%, and nine of the 11 S&P 500 sectors closed in positive territory, led by utilities (+1.8%), financials (+1.3%), consumer staples (+1.2%), and industrials (+1.2%).

The industrials sector benefited from an earnings-related jump in Deere & Co. (DE), which surged 8.1% following a strong report. Conversely, the communication services sector lagged significantly, dropping 1.7%, as Alphabet fell 4.6%. GOOG’s decline was tied to reports that the U.S. Department of Justice is pushing for a forced sale of its Chrome browser and potentially Android, raising antitrust concerns.

In economic news, a stronger-than-expected October Existing Home Sales report (3.96 million vs. 3.90 million consensus) and a drop in weekly jobless claims (213,000 vs. 221,000 consensus) highlighted a resilient housing and labor market. However, the Philadelphia Fed Index disappointed at -5.5, below the 7.0 consensus, reflecting softening manufacturing activity. Treasury yields rose on the data, with the 10-year yield climbing three basis points to 4.43%, and the 2-year yield increasing four basis points to 4.35%.

The rising trend in continuing jobless claims suggests a labor market where laid-off workers are facing more challenges finding new employment. Meanwhile, housing data indicated increasing inventory levels but persistent affordability constraints due to high mortgage rates and elevated home prices, likely capping sales potential.

While broad-based buying supported the rally, sector rotation and external pressures, such as regulatory risks for Alphabet, added nuance to the market's performance. The day’s events reinforced the themes of a resilient economy and shifting sector dynamics amid evolving risks.

Friday, November 22

Friday’s trading session saw U.S. stocks finish higher, capping a strong week for the markets ahead of the Thanksgiving holiday. The Dow Jones Industrial Average climbed 1%, closing at a record high, while the S&P 500 gained 0.4%, and the Nasdaq Composite rose 0.2%. For the week, the Dow led with a 2% increase, and the S&P 500 and Nasdaq both advanced 1.7%, bouncing back from last week’s declines. Broad buying momentum supported gains, with the S&P 500 Equal Weight Index up 0.9%, reflecting widespread participation across sectors.

The session was relatively quiet, with nine of the 11 S&P 500 sectors finishing higher. Consumer discretionary (+1.4%), industrials (+1.2%), and consumer staples (+0.9%) led the pack, while communication services (-0.5%) lagged for the second day in a row. Losses in mega-cap tech names like Alphabet (-1.4%), Meta Platforms (-0.5%), and Nvidia weighed on the communication services and technology sectors. Alphabet was particularly affected by reports that Microsoft-backed OpenAI may develop its own browser, posing a competitive threat but potentially strengthening Alphabet’s antitrust case.

Earnings results added to the market's mixed tone. Retailers Ross Stores (+3.1%) and Gap (+10.4%) surged on strong results, while tech companies like NetApp (-2.5%) and Intuit (-4.2%) underperformed following earnings. Bitcoin-related stocks also saw notable gains, with Coinbase (+3.1%) and MicroStrategy (+10.9%) standing out as Bitcoin approached the $100,000 milestone, trading at $99,156.

Economic data provided further support for the rally. The S&P Global US Manufacturing PMI rose to 48.8, while the Services PMI surged to 57.0, indicating robust expansion in the services sector. The University of Michigan Consumer Sentiment Index held steady at 71.8, slightly below expectations but showing resilience in the wake of the election. Meanwhile, the CBOE Volatility Index (VIX) continued to decline, settling at 15.83, indicating subdued market volatility.

For the week, all three major indices made solid gains. The Dow climbed 2%, the S&P 500 rose 1.7%, and the Nasdaq advanced 1.7%. The Dow closed within striking distance of its record high, reflecting strong sentiment as investors shifted focus to the holiday-shortened week ahead. With key economic reports, including the PCE inflation index due Wednesday, markets will remain attentive to developments that could shape the outlook into year-end.