Despite reduced buyer activity over the Thanksgiving holiday week, Wall Street saw its third consecutive week of gains. The S&P 500 index is currently only 6% away from its peak of 4,818 in January 2022, while the Nasdaq lags around 5% below its November 2021 high of 16,764. These leading U.S. stock indices are steadily approaching their all-time highs.
Microsoft Hits Another All-Time High
During Wednesday’s trading session, Microsoft achieved a record peak of $377 per share. With a year-to-date increase of 57%, reminiscent of its performance in 2009 and even surpassing returns not witnessed since 1999, this remarkable feat further solidifies the tech giant’s exceptional year.
Microsoft also played a pivotal role in the narrative of Sam Altman, the CEO of OpenAI and the mind behind ChatGPT. Altman is set to resume his position promptly after being ousted just a week earlier, with Microsoft offering him reemployment. While the specifics of this turnaround remain somewhat unclear, they underscore the current turbulence in the rapidly evolving market landscape.
Federal Reserve Minutes from November Fail to Impress
The latest Federal Reserve minutes did not unveil any significant surprises, with policymakers signaling that interest rates are now at a restrictive level. The Fed emphasized the need for more evidence of a sustained decline in prices. Market expectations have completely ruled out a rate hike in December, with forecasts pointing towards four rate cuts in 2024.
Economic Data Paints a Varied Picture
In November, U.S. private business activity remained relatively stable. A more optimistic upsurge in companies surpassing expectations, as indicated by the S&P Global PMI, offset a more pronounced-than-expected decline in production. While employment figures are beginning to dip, there is a silver lining in the form of easing price pressures, aligning with the Federal Reserve’s 2% target.
Analysts Release Projections Post Nvidia’s Strong Earnings
Following Nvidia’s announcement of third-quarter results that exceeded expectations, accompanied by a robust earnings outlook for the period, several Wall Street analysts raised their price targets for the semiconductor giant in response.
Argentina’s Newly Elected President Pledges Policy Adjustments
Javier Milei, a vocal advocate of individualism and a supporter of Donald Trump, emerged victorious in Argentina’s presidential election on November 19, defeating the Peronist opposition amid soaring inflation rates exceeding 140%. The day after Milei’s win, the real estate market witnessed a remarkable surge. The incoming president has committed to implementing bold and far-reaching policies, including currency devaluation.
Highlights for the Month Ahead
On Thursday, the October Personal Consumption Expenditure price index, the Fed’s preferred inflation gauge, is set for release. Economists predict a decrease in the annual rate from 3.4% to 3.1%. Thursday will also see the release of individual income and spending data. Additionally, keep an eye out for the November ISM Manufacturing PMI on Friday. Fed Chair Jerome Powell delivered remarks at Spelman College in Atlanta on Friday.
The week kicks off with income data from ZScaler on Monday. Tuesday will feature reports from Intuit, Workday, CrowdStrike Holdings, Splunk, and Hewlett Packard Enterprise. Wednesday will see earnings releases from Salesforce, Synopsys, Snowflake, and Dollar Tree. Thursday may bring updates from Marvell Technology, Kroger, and Ulta.
