Stocks Buoyed by Powell's Remarks; Euro Trims Gain: Markets Wrap
Stocks hit a fresh peak as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The euro pared gains as the French government fell after a no-confidence vote in Parliament.
(Bloomberg) — Stocks hit a fresh peak as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The euro pared gains as the French government fell after a no-confidence vote in Parliament.
A rally in big tech drove the S&P 500 toward its 56th closing record in 2024. The Nasdaq 100 climbed over 1%. Nvidia Corp. led a gauge of the “Magnificent Seven” megacaps higher as the group extended this year’s surge to 62%. Salesforce Inc. jumped 9% and Marvell Technology Inc. soared 24% as their results boosted hopes both companies will keep benefiting from an industrywide boom in artificial intelligence.
Powell, who participated in a moderated discussion, also said officials can afford to be cautious. One of his favorite barometers of the economy — the Beige Book — showed economic activity increased slightly in November after little change in preceding months, and US businesses grew more upbeat about demand prospects.
“Right now, the odds favor another cut this month followed by a pause in January, but a significant change in the jobs landscape could rearrange those puzzle pieces,” said Chris Larkin at E*Trade from Morgan Stanley.
The S&P 500 rose 0.5%. The Nasdaq 100 climbed 1.1%. The Dow Jones Industrial Average added 0.5%.
Treasury 10-year yields declined four basis points to 4.18%.
To George Smith at LPL Financial, momentum could continue for stocks as December has been a good month for market seasonals.
It’s overall the second-best performing month since 1950 — with a 1.6% average gain — and the third-strongest over the past five years, according to Smith. When studying the proportion of positive monthly returns since 1950, December often delivers the highest proportion of positive monthly returns — around 74%.
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