S&P 500 and Nasdaq Hit Record Highs Amid Optimistic Forecasts and Economic Anticipation

On Tuesday, U.S. stock markets showed mixed performances with the S&P 500 and the Nasdaq Composite reaching new record highs, while the Dow Jones Industrial Average saw a minor decline. Investors remained focused on upcoming economic data, particularly the November non-farm payrolls report and the Federal Reserve's interest rate policy.

The S&P 500 closed with a slight increase of 0.05%, marking yet another all-time closing high at 6049.88 points, its 55th such achievement this year. The Nasdaq gained 0.40%, closing at 19480.91 points, having hit an intraday peak of 19486.15, a new record. Conversely, the Dow Jones dipped by 0.17%, closing at 44705.53 points.

The recent surges in the stock market can be attributed to optimistic forecasts and market conditions. Former Chief Equity Strategist at J.P. Morgan, Tom Lee, forecasts the S&P 500 could reach 6300 points by year-end, supported by favorable economic climates and historical trends. According to Lee, years following an election with market gains over 10% in the first half tend to continue rising in December with a 100% probability. He also notes that a drop in the 10-year U.S. Treasury yield to 4.1% further supports market expansion.

Adding to the positive sentiment, October's Job Openings and Labor Turnover Survey (JOLTS) showed an increase in job vacancies from 737 million in September to 774 million in October, suggesting the labor demand is stabilizing after months of decline.

Looking ahead, the market eagerly awaits the November non-farm employment report, due Friday, with expectations of a 214,000 job increase, significantly up from October’s disappointing 12,000-job gain. Analysts believe these figures will provide crucial insights into the recovery of the U.S. labor market following setbacks from natural disasters and strikes in October.

Meanwhile, the oil market remains tentative with West Texas Intermediate (WTI) crude futures rising by 2.70% to settle at $69.94 a barrel. Speculations continue regarding OPEC+ potentially extending its latest round of oil production cuts into early next year, which could provide additional stability to the oil market.

As these developments unfold, the financial landscape remains dynamic, with investors closely monitoring these indicators for further cues on the market's trajectory.