S&P 500 Notches New Record Highs

"Black Friday officially kicks off an important holiday season for Apple as its flagship iPhone 16 represents the beginning of its Apple Intelligence launch with the release of 18.2 likely next week," Wedbush analyst Dan Ives wrote @CBSNews https://t.co/IwPJsOkMrb 🏆🔥🐂🍿

— Dan Ives (@DivesTech) November 29, 2024

The stock market rose to new heights on Friday during a shortened trading day, capping a strong month for equities. The S&P 500 added 0.56% to close at 6,032.38, while the Nasdaq Composite jumped 0.83% to 19,218.17. The Dow Jones Industrial Average climbed 188.59 points, or 0.42%, ending at 44,910.65. Both the Dow and S&P 500 notched new intraday and closing highs.

S&P 500 gained 5.7% in Nov, posting the best month of 2024. pic.twitter.com/jBMLjhE4oq

— Holger Zschaepitz (@Schuldensuehner) November 29, 2024

Approximately three out of every five S&P 500 components finished the session in the green, marking a broad advance that propelled the index into uncharted territory. These gains came as traders closed a winning week and month. November trading largely centered on the postelection rally spurred by President-elect Donald Trump’s victory earlier this month. The Dow added 1.4% this week, bringing its November gain to 7.5%.

Morning Report: US financial #markets closed for #Thanksgiving Day. Tech #stocks spark Europe market rebound; #inflation data looms.https://t.co/d3NPxcxD9f

— CommSec (@CommSec) November 28, 2024

The S&P 500 and Nasdaq Composite advanced 1.1% on the week, ending November with more than 5% and 6% gains, respectively. With these gains, the Dow and S&P 500 recorded their best months of 2024. The small-cap-focused Russell 2000 outperformed in November as investors anticipated the group would benefit from Trump’s potential tax cuts. The Russell 2000 surged 10.8% this month, helped by a gain of 1.2% this week. “The prevailing takeaway from November, to me, is that what was true before the election has remained true after the election,” said Ross Mayfield, an investment strategist at Baird Private Wealth Management. “As we head into December, it’s really hard to fade this bull market here, with everything going right, the election in the rearview, and a seasonal tailwind that still has some room to run.” Stocks have also been lifted late this year by expectations that interest rates will remain on a downward course, which raises the present value of future earnings and should boost the economy. Fed funds futures now indicate a 66% likelihood that the central bank will lower rates by 25 basis points at its policy meeting next month.

Fresh highs for U.S. stocks

The stock market was closed on Thursday and operated on a shortened schedule, closing at 1 p.m. ET on Friday in observance of the Thanksgiving holiday. Trading volumes on the New York Stock Exchange and Nasdaq were less than two-thirds of the past 30 days’ daily average. According to Bespoke Investment Group, there hasn’t been a stock market correction (a pullback of 10% or more) this year. Since 1928, the S&P 500 has averaged a correction once every 346 days, almost yearly. However, the market has been stronger recently, as half the yearly periods since 2000 haven’t seen such a pullback. The S&P 500 is up more than 26% in 2024, and it is on track for its best year since 2021. According to Wedbush Securities, a recent Federal Trade Commission (FTC) probe shouldn’t be a concern for investors. “For Microsoft, which has already been through its battle with the US Government, we believe this FTC suit is much more bark than bite and ultimately will fade into the background,” analyst Dan Ives told clients. He maintained his outperform rating on Microsoft, highlighting a 30% upside potential. U.S. stocks have soared this month on promises of more market deregulation under a second Trump administration. However, Jefferies strategist Christopher Wood speculated that the market might reach its peak before Trump’s inauguration in January. 20. “Financial markets can get very extreme at inflection points,” he wrote. Wood noted that the S&P 500 price-to-sales ratio is nearing a record high, with America making up 66.7% of the MSCI All-Country World Index, an all-time high. According to Evercore ISI chartered market technician Rich Ross, U.S. stocks “remain in the throes of a powerful year-end surge” that could drive the S&P 500 to 6,300 by New Year’s. Ross titled his note, “Tis the Season for a Squeezn,” referring to the possibility that stocks will be pushed higher through the end of the year.