S&P futures increased on Wednesday, as market aimed to extend its consecutive winning sessions. Futures associated with the Dow Jones Industrial Average increased by 39 points, reflecting a rise of 0.1%. S&P 500 futures and Nasdaq 100 futures experienced an increase of 0.2% and 0.3%, respectively. Alphabet shares exhibited upward momentum, increasing by over 1% in the premarket following a similar rise of more than 1% in the previous trading session. The stock has experienced an increase of approximately 8% this week. On Tuesday, the three major U.S. stock indexes concluded the trading session with gains following a period of volatility. The 30-stock Dow Jones Industrial Average concluded the trading day with an increase of over 660 points, representing a rise of 1.4%, marking its third consecutive session of gains.
A number of technology equities experienced upward movement, contributing to the overall increase in the market. Alphabet reached new record highs following a report indicating that Meta Platforms is contemplating the use of the Google parent’s TPU chips in 2027. Chipmaker Nvidia experienced a decline of over 2.5% during this period. “Stocks are attempting to recover from recent weeks of declines, indicating that dip buyers remain actively engaged,” stated Clark Bellin, president and chief investment officer of Bellwether Wealth. “The extent of the market’s decline in November was merely around 4% from the late October peak, significantly less than the usual 10% correction benchmark. While we anticipate the stock market may return to these peaks, there appears to be no clear catalyst to drive the market forward from now until year-end,” Bellin noted.
Market participants remain vigilant regarding factors that may influence the Federal Reserve’s forthcoming decision on interest rates. Market participants are assigning an approximate 85% probability to a quarter percentage point reduction by the Federal Reserve in December, as per indications. Treasury Secretary Scott Bessent indicated that there exists a “very good chance” that Trump will “make an announcement before Christmas” regarding the next Fed chair. While he stated that he was interviewing candidates, expectations are increasingly aligning with Kevin Hassett, following reports that he has surfaced as a leading contender for the position. Hassett is perceived as an individual more inclined to advocate for reduced rates.
In assessing the broader landscape, November has emerged as a challenging month for equities. All three U.S. indexes are poised to conclude the month with losses, as apprehensions regarding high valuations have tempered the momentum of several high-performing technology stocks. The S&P 500 has experienced a decline of approximately 1.1% in November, whereas the tech-centric Nasdaq Composite has seen a loss nearing 3%. The Dow has experienced a decline of approximately 1% thus far this month.