US Market Reaction On Monday: S&P 500 & Nasdaq Jump 2-3%, Dow Jones Up Too; What Is Impacting Wall Street

Wall Street kicked off the current trading week on a strong note, with the S&P 500 gaining by more than 1.5% and the Nasdaq Composite surging nearly 3%. Dow Jones also followed a positive trend. This is a holiday-shortened week due to the Thanksgiving celebration going ahead. The US market's robust performance also comes at a time when investors' confidence is heightened for further policy easing from US Federal Reserve in December.

US Market Today:

Dow Jones Industrial Average: The DJIA index traded at 46,456.34, up by 210.93 points or 0.46% at the time of writing. The benchmark touched an intraday high of 46,587.71 in the early trade.

S&P 500: Meantime, the S&P 500 index climbed by at least 1.7% to hit an intraday high of 6,712.77. The benchmark traded currently at 6,699.40, up by 1.5%.

Nasdaq Composite: The tech-heavy index rallied the most by 2.72% to hit an intraday high of 22,879.73. Currently, the index is near its day's high to trade at 22,837.20, up by 2.5%.

What Is Impacting US Market Today?

US stocks rallied to start the holiday shortened week with the S&P 500 up 1.6% the Nasdaq jumping 2.6% and the Dow adding just over 300 points as investors grew more confident the Fed will ease policy soon. New York Fed President John Williams signalled there is room for a near term rate cut and Fed Governor Christopher Waller said recent labour market softening makes a December trim plausible, as per Trading Economics data.

Furthermore, as per CME FedWatch, futures has put about 79% probability on a 25bp cut at the Dec 9 and 10 meeting.

It also highlighted that traders are facing a busy economic calendar this week which includes data of delayed US retail sales and PPI data. These economic parameters will give further clarity on Fed's stance in December.

Among the stocks, the best performers were technology stocks driven by Broadcom who gained by over 10% owing to revived sentiment in AI stocks. Also, Alphabet stock climbed more than 4% and Gemini was up by over 3%. The world's richest man, Elon Musk-backed Tesla also surged by over 7%.

Overall the positive prospects in the AI segment has stirred fresh buying.

US Market Weekly Outlook:

Nathan Peterson, director of derivatives research and strategy, SCFR said, "This week features several Treasury auctions, including a 2-year today following lackluster demand earlier this month. Tomorrow brings the delayed September Producer Price Index (PPI) and retail sales reports. Checking technicals, Friday's close looked positive as the S&P 500 index finished above its 100-day moving average. That trendline, now at 6,548, forms key support."

He added, "Investors appear to have a line in the sand to trade against and the near-term assessment is moderately bullish."

What could challenge Nathan's forecast? As per him, if there are more AI deal announcements, or a continued push higher in CDS premium from AI players like Oracle, this could weigh on investor sentiment and lead to selling. Another potential bearish catalyst would be a hot personal consumption expenditure (PCE) report next Wednesday.

Key Economic Data To Watch Out:

November 25 (Tuesday)

Consumer Confidence, Producer Price Index (PPI), FHFA Housing Price Index, Pending Home Sales, SA&P Case-Shiller Home Price Index

November 26 (Wednesday)

Advertised International Trade in Goods, Advanced Retail Inventories, Advanced Wholesale Inventories, Chicago PMI, Durable Orders, EIA Crude Oil Inventories, Q3 GDP - Second Estimate, MBA Mortgage Applications Index, New Home Sales, PCE Prices, Personal Income Personal Spending, Continuing Claims, EIA Natural Gas Inventories, Initial Claims

Earnings To Watch Out This Week:

November 24 (Monday)

Agilent Technologies Inc. (A), Amentum Holdings Inc. (AMTM), Corporation America Airports SA (CAAP), Keysight Technologies Inc. (KEYS), Semtech Corp. (SMTC), Symbotic Inc. (SYM), Woodward Inc. (WWD), Zoom Communications Inc. (ZM)

November 25 (Tuesday)

Alibaba Group Holding Ltd. (BABA), Analog Devices Inc. (ADI), Autodesk Inc. (ADSK), Best Buy Co. (BBY), Burlington Stores Inc. (BURL), Dell Technologies Inc. (DELL), Dick's Sporting Goods Inc. (DKS), NetApp Inc. (NTAP), NIO Inc. (NIO), Workday Inc. (WDAY), Zscaler Inc. (ZS)

November 26 (Wednesday)

Banco Macro SA (BMA), CMB Tech NV (CMBT), Deere & Co. (DE), Ehang Holdings Ltd. (EH), Li Auto Inc. (LI)