Market Wrap | Major Indices Rally as Tech Stocks Shine and Earnings Boost Confidence
1min read On Friday, November 29, U.S. stock markets saw a positive finish across major indices. The S&P 500 index rose by 0.56%, closing at 6,032.38 points; the Dow Jones Industrial Average increased by 0.42%, ending at 44,910.65 points; and the Nasdaq Composite surged by 0.83%, closing at 19,218.17 points.
Significant movements in individual stocks were noted, with Unusual Machines soaring by 87.97%, KULR Technology climbing 61.11%, and Trident Digital rising 43.24%. Conversely, Applied Therapeutics dropped sharply by 76.31%, Contango ORE fell 21.91%, and Agora slid 18.74%.
The U.S. stock market remains highly valued globally, bolstered by robust earnings expectations. For the first quarter of 2024, U.S. companies' profits are projected to grow by 7.1% to a total of $3.82 trillion, surpassing expectations of 3.8%. A strong majority of S&P 500 components have reported earnings beating estimates, pushing optimistic analysts to foresee a sustained uptrend justified by these impressive earnings.
Corporate actions were highlighted by notable investments from major tech and traditional companies. Meta is actively planning a subsea cable project with an investment expected to surpass $10 billion, aimed at enhancing global communications infrastructure. Meanwhile, Nissan seeks new investors amid financial constraints, having only 12 to 14 months of viable operation without external funding.
Tech stocks predominantly rose. For instance, Nvidia's last session ended with a 2.15% gain amidst broader tech market enthusiasm. Notably, Tesla’s shares climbed 3.69%, reinforcing its substantial market momentum. Conversely, in the crypto segment, Coinbase reflected mixed sentiments, declining by 4.75% influenced by Bitcoin’s volatile performance during the day.
The market also benefited from macroeconomic indicators and geopolitical considerations that failed to disrupt the prevailing optimism. Despite volatility associated with geopolitical conflicts and economic forecasts projecting a slowdown, the stock market remains resilient, driven partly by fiscal stimulators and policy assurances.
As the year-end approaches, tepid volatility combined with stable economic indicators suggests potential for continued market upticks, albeit with presumed caution among investors regarding substantial bearish reversals.