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Stock Market News for Nov11, 2024

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U.S. stock markets closed higher on Friday maintaining the impressive rally of the previous four days. Market participants remained bullish after Trump’s presidential race win and interest rate cut by the Fed for two consecutive FOMC meetings. Third-quarter earnings results also boosted investors’ confidence. All three major stock indexes ended in positive territory. For the week, these indexes also closed in positive zone. 

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.6% or 259.65 points to close at 43,988.99, marking its fresh closing high. In intraday trade, the blue-chip index crossed 44,000 for the first time in history hitting 44,157.29. Notably, 21 components of the 30-stock index ended in positive territory while 9 in negative zone. 

The tech-heavy Nasdaq Composite finished at 19,286.78, rising 0.1% due to strong performance by technology giants. In intraday trading, the tech-laden index posted an all-time high at 19,318.56. The major gainer of the tech-laden index was Fortinet Inc. (FTNT - Free Report) . 

Stock price of the network security service provider jumped 10%. Fortinet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 rose 0.4% to finish at 5,995.54. In intraday trade, Wall Street’s benchmark crossed 6,000 for the first time in history hitting 6,012.45. Eight out of 11 broad sectors of the broad-market index ended in positive territory while three in negative zone. 

The Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE), the Financials Select Sector SPDR (XLF), the Consumer Discretionary Select Sector SPDR (XLY) and the Consumer Staples Select Sector SPDR (XLP) increased 1.9%, 1.7%, 1.1%, 1.4% and 1.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 1.7% to 14.94.

Several Positive Catalysts

The resounding victory of Donald Trump as the 47th president of the United States of America boosted market participants’ confidence on U.S. stocks. Trump’s protectionist policies, to strengthen U.S. industries, especially the manufacturing sector bodes well for investors. 

The Federal Reserve’s low-interest rate policy, in which the central bank reduced the Fed fund rate by 75 basis points between September and November also seen significantly favorable for economic as well as stock markets growth. 

Better-than-expected earnings results for third-quarter 2024, strong fundamentals of the U. S. economy, climbing U.S. dollar-index price and stable oil price also bolstered investors’ sentiments.

Economic Data

The University of Michigan reported the preliminary data of consumer sentiment for November came in at 73, beating the consensus estimate of 71. The final reading of October was 70.5. The sub-index for current economic condition was 64.4 compared with 64.9 in October. Sub-index for consumer expectations as 78.5 compared with 74.1 in October. 

Weekly Roundup 

Last week was an astonishing one for Wall Street. The three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – rallied 4.6%, 4.7% and 5.7%, respectively. Moreover, the small-cap benchmark – the Russell 2000 – also advanced 8.6%.

Both Dow and the S&P 500 recorded their best week since November 2023. The presidential election win by Donald Trump, Fed’s gradual rate cut policy, better-than-expected earnings reports boosted investors’ confidence on risky assets like equities.


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