The Nasdaq and S&P 500 closed on Monday at record levels of 19,403 and 6,047, respectively. On average, they increased nearly 1%. Technology, communication services, and consumer discretionary stocks lead the market overall.
On the other hand, the Dow Jones Industrial decreased slightly by 0.29%, while the NASDAQ also recorded mixed feelings because of the unknowns accompanying the end of the year.
Tesla (TSLA, Financial) stock rose 3.5% after Stifel lifted its price target, citing an improved growth outlook. Stocks have had a strong November; the Dow and S&P 500 posted their most significant monthly percentage gains of about 7% since November. Some speculators expect the release of economic indicators this week, with Friday's Non-farm Payroll report that may influence decisions from the Federal Reserve.
Federal Reserve official Christopher J. Waller suggested a cut in rates next year to reduce the tightness of monetary policy. However, the inflation problem remains relevant and creates difficulties in the way forward. On the other hand, manufacturing activities in the US performed slightly better in November, as per the Institute for Supply Management index, making the economic mood upbeat.
Benchmark strategists are keeping their guard up even with the tech rally. "There is hope but still a cloud of doubt," said Rick Meckler of Cherry Lane Investments, referring to economic policy direction under the new administration. US business owners anticipate favorable reimbursement, lowered taxes, and reduced regulation by former President Donald Trump's comeback to office while they brace themselves for tariffs.
So far, the market's movement in the next calendar year is expected to depend on crucial economic figures and policies. Therefore, fluctuation is expected to remain the norm until the end of the year.
