In a day marked by significant market movements, stocks rallied following a recent Federal Reserve meeting that resulted in a quarter-point rate cut, indicating minimal desire for further easing in monetary policy. The Russell 2000 index achieved a new intraday high, while both the Dow Jones Industrial Average and the S&P 500 hovered just under 1% from their all-time peaks. The industrial and materials sectors led the charge, although utilities experienced a slight downturn. Notably, the SPDR Technology Select Sector ETF (XLK) extended its impressive performance, marking a 13th consecutive day of gains—tying a record established in February 2017. Precious metals also saw upticks, with silver reaching an all-time high amidst rising gold prices.
In the political arena, President Donald Trump announced the seizure of a large oil tanker off Venezuela’s coast, a move that elevated oil prices. Trump intensified his rhetoric against Venezuelan President Nicolas Maduro, stating that Maduro’s “days are numbered,” particularly as most of Venezuela’s oil exports are directed toward China.
In corporate news, shares of Oracle dropped 11% in after-hours trading following a disappointing revenue report. This decline places Oracle in a challenging position, approaching its worst quarter since 2002, even as the tech giant is poised for a third consecutive year of growth, with a remarkable 170% increase over the last three years.
On the other hand, Broadcom shares reached a 52-week high as anticipation builds for its earnings report scheduled for Thursday. The chipmaker has surged approximately 658% over the past three years, outpacing all but one of its peers.
Investors are closely watching Costco’s upcoming quarterly results, as the retail giant is on track to conclude the year with a decline in stock price for the first time since 2022. In contrast, Walmart has outperformed Costco by a notable 20 points over the last three months, raising concerns from pundits like “Mad Money’s” Jim Cramer regarding Costco’s future performance.
Another company making headlines is Lululemon, set to report its earnings soon. The athleisure brand is facing challenges with its stock on course for the worst annual performance since 2008, losing over 60% of its value in the last two years.
Meanwhile, Carvana continues to shine in the market, achieving a record 13-day winning streak, marking a 50% increase over that period. With its stock reaching all-time highs, Carvana is set to join the S&P 500 in the coming weeks, adding to its momentum.
As the market prepares for Thursday’s trading session, all eyes will be on these key indicators and corporate performances, shaping investor sentiment and strategy for the days ahead.
