In a week marked by volatility, stock futures hovered near unchanged levels on Tuesday night following two consecutive days of gains for key U.S. indexes. The Dow Jones Industrial Average futures nudged up by 2 points, while futures for both the S&P 500 and Nasdaq 100 experienced slight declines of less than 0.1%. On the previous trading day, all three major stock indexes posted gains, with the Dow closing up more than 660 points, or 1.4%, marking its third straight day of positive movement.
The resurgence was notably supported by several technology stocks, with Alphabet reaching new all-time highs after reports emerged indicating that Meta Platforms is contemplating the use of Google’s tensor processing unit (TPU) chips for its operations by 2027. Nonetheless, chipmaker Nvidia faced pressures, declining more than 2.5% amidst the broader market dynamics.
Clark Bellin, president and chief investment officer of Bellwether Wealth, observed that the market appears to be staging a recovery after a challenging few weeks. He noted that the market’s recent pullback in November was relatively modest at only 4% from its late October high, significantly below the standard 10% correction threshold that typically raises alarm among investors. “Stocks are trying to stage a comeback… suggesting that dip buyers are still out in full force,” he remarked. However, he cautioned that there doesn’t seem to be an immediate catalyst poised to drive the market higher heading into year-end.
As discussions around the Federal Reserve’s next interest rate policy continue to gain traction, traders are pricing in an 85% probability of a quarter percentage point rate cut in December, according to the CME FedWatch tool. In a related note, Treasury Secretary Scott Bessent hinted at the possibility of an announcement regarding the next Fed chair before Christmas. Current speculation points toward White House National Economic Council Director Kevin Hassett as a favored candidate, given his perceived inclination toward advocating for reduced rates.
Despite the recent uptick in stock prices, November has proven challenging for the markets overall. All three major U.S. indexes are on track for losses this month, with notable concerns regarding high valuations contributing to a slowdown in the momentum of several technology stocks. The S&P 500 has seen a decline of approximately 1.1% over the month, while the tech-laden Nasdaq Composite has dropped nearly 3%. The Dow has also slipped about 1% month to date, reflecting the broader concerns among investors amid shifting market conditions.
