U.S. Stock Market Performance
U.S. stocks reached new records on Tuesday, continuing a strong performance this year. The S&P 500 rose by 2 points, setting an all-time high for the 55th time in 2024. It has climbed in 10 of the last 11 days and is on track for one of its best years in decades. Despite this, the Dow Jones Industrial Average dropped by 76 points, or 0.2%, while the Nasdaq Composite gained 0.4% to set another record.
Company News: AT&T and U.S. Steel
AT&T saw a 4.6% rise in stock value after the company increased its profit forecast for the year and announced a $10 billion stock buyback plan, with another $10 billion expected in 2027. On the other hand, U.S. Steel dropped 8% after news emerged that President-elect Donald Trump opposed the $14.1 billion acquisition offer from Nippon Steel, citing concerns over national security and unionized workers.
Tesla Faces Setback
Tesla experienced a 1.6% decline after a Delaware judge reaffirmed a ruling requiring the company to revoke Elon Musk’s multibillion-dollar pay package. This ruling had previously sparked controversy regarding Musk’s compensation.
Bond Market and Economic Outlook
In the bond market, Treasury yields remained steady after a report indicated that U.S. job openings rose slightly at the end of October, which led to renewed optimism about the economy’s ability to avoid a recession. The yield on the 10-year Treasury increased slightly to 4.23%. Investors remain confident that the Federal Reserve will cut its interest rates at its next meeting, betting on a nearly three-in-four chance of a rate reduction.
Key Economic Reports Ahead
This week, the monthly jobs report, due on Friday, will be a crucial indicator for the Federal Reserve’s next move on interest rates. The report, which tracks hiring and firing trends in November, could be tricky to interpret due to distortions caused by weather and strikes in October.
Global Market Updates
Globally, South Korea’s currency dropped 1.1% against the U.S. dollar following political unrest, including the declaration and subsequent lifting of martial law. Meanwhile, Japanese stocks surged, with the Nikkei 225 rising by 1.9%. Some analysts believe that tensions around U.S.-China trade relations could benefit Japanese markets, particularly with potential tariffs on Chinese goods.
China’s Trade Impact
In response to escalating trade tensions, China announced a ban on exporting essential high-tech materials, such as gallium and germanium, to the U.S. This move followed the U.S. expanding its export control list, targeting 140 Chinese tech companies involved in chipmaking and related industries. As a result, stock indexes in Hong Kong rose 1%, and Shanghai gained 0.4%.
European Market Performance
In France, the CAC 40 index rose by 0.3%, despite ongoing concerns about political instability over the national budget.
