The Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) closed at record highs on Monday, kicking off December on a strong note after a standout year in 2024.
The S&P 500 rose 0.2%, continuing its streak of record closes, while the Nasdaq surged nearly 1%, bolstered by Apple (AAPL) reaching a new peak. The Dow Jones Industrial Average (^DJI), however, dipped 0.3% from its own recent high.
Tech stocks led the charge, with Tesla (TSLA) and Meta (META) climbing over 3%. These gains come as the S&P 500 and Dow enter December following their strongest monthly performance in a year. The rally has been fueled by market optimism surrounding President-elect Donald Trump’s victory, boosting year-to-date gains to over 25% for the S&P 500, nearly 20% for the Dow, and close to 30% for the tech-focused Nasdaq.
Key Movers in Focus
Among individual stocks, Jeep-maker Stellantis (STLA) saw its shares plunge after the unexpected resignation of CEO Carlos Tavares. Intel (INTC) also fell as CEO Pat Gelsinger announced his retirement amid challenges at the chipmaker.
Fed Policy and Jobs Data Loom Large
Investors now turn their attention to the upcoming November jobs report, due Friday, alongside job openings and private payroll data. These figures are pivotal as they could influence Federal Reserve policy decisions on interest rates. A surprise in the jobs report may reset expectations for rate cuts, a key driver of this year’s stock market performance. Despite some uncertainty, the appetite for equities remains robust, with hopes of a slower pace of Fed tightening continuing to provide tailwinds.
Dollar Rises Amid Trump’s Tariff Threat
The U.S. dollar index (DX=F) climbed as markets digested President-elect Trump’s latest tariff warning. Trump reiterated his hardline stance over the weekend, threatening 100% tariffs on BRICS countries (Brazil, Russia, India, China, and South Africa) if they pursue alternatives to the U.S. dollar. His remarks have further heightened tensions, following earlier tariff threats targeting Canada, Mexico, and China.
This blend of market optimism and geopolitical tension sets the stage for a dynamic December as investors balance promising equity gains with looming policy and economic uncertainties.
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