Stock market/ S&P 500/ Nasdaq/ Cyber Monday stocks/ bond yields/ global markets/ NEW YORK/ J. Mansour/ Morning Edition/ U.S. stocks began December trading near record levels, with the S&P 500 inching up 0.1% following its best month of the year. The Nasdaq gained 0.6%, while the Dow fell slightly. Retailers like Amazon benefited from Cyber Monday optimism, and AI-driven stocks such as Super Micro Computer soared. Bond yields climbed as investors awaited key economic reports later this week.
Wall Street’s Record Heights: Quick Looks
- Market Overview: The S&P 500 rose slightly, Nasdaq climbed 0.6%, and Dow fell 85 points.
- Top Movers: Super Micro Computer surged 12.9%, while Stellantis slid 7.5% after its CEO resigned.
- Retail Stocks: Amazon gained 1.6% on Cyber Monday optimism, but Target fell 2%.
- Dollar Strengthens: U.S. dollar gains against the euro amid tariff threats and political tensions in France.
- Global Markets: Chinese stocks surged on strong manufacturing data; Europe saw mixed results.
Wall Street Drifts Near Record Highs to Start December
Deep Look
U.S. Stocks Start December Strong
Wall Street opened December trading near record highs, with the S&P 500 advancing 0.1% to continue its momentum from a record-setting November. The Nasdaq composite climbed 0.6%, boosted by gains in technology and AI-related stocks, while the Dow Jones Industrial Average dipped 85 points, or 2%, in early trading.
Super Micro Computer, a company specializing in AI-related server technology, led the market with a 12.9% jump. The rally came after the company announced it found no evidence of management misconduct following an investigation into financial practices. The stock’s recovery highlights investor confidence in the AI sector despite recent volatility.
Leadership Changes Shake Major Companies
Corporate shakeups made headlines as Intel rose 2.2% after CEO Pat Gelsinger announced his retirement. The company’s board expressed commitment to restoring investor confidence as it searches for a successor.
In contrast, Stellantis shares plummeted 7.5% following the resignation of CEO Carlos Tavares. The automaker, known for brands like Jeep and Citroën, faces declining sales and an inventory backlog. Tavares’ departure adds uncertainty to a company already grappling with industry challenges.
Retailers Respond to Cyber Monday Boost
Retail stocks showed mixed results as investors weighed Cyber Monday expectations. Amazon climbed 1.6%, fueled by optimism about record-breaking online sales. Walmart also ticked up 0.2% after its holiday forecast pleased investors, while Target fell 2% following a more cautious outlook for the shopping season.
Trump’s Tariff Threats Impact Markets
President-elect Donald Trump’s weekend threat to impose 100% tariffs on countries undermining the U.S. dollar had a muted impact on markets. Trump targeted major economies like China, Brazil, and India, signaling a focus on preserving the dollar’s dominance in global trade.
The U.S. dollar strengthened against multiple currencies, including the euro, which dropped 0.7% amid budget disputes in France. Despite Trump’s threats, analysts suggest the dollar’s rise was more influenced by European political tensions than tariff concerns.
Bond Yields and Upcoming Economic Data
Treasury yields climbed as investors anticipated key economic reports this week. The yield on the 10-year Treasury rose to 4.23% from 4.18% on Friday. This week’s highlights include job openings data, weekly unemployment claims, and the November jobs report, all of which could provide insights into the Federal Reserve’s next moves on interest rates.
Global Market Trends
Chinese stocks outperformed global markets, with indexes in Hong Kong and Shanghai rising 0.7% and 1.1%, respectively. Manufacturing surveys showed strong new and export orders, potentially driven by importers in the U.S. rushing to secure goods ahead of Trump’s expected tariff policies.
European markets also saw gains, with France’s CAC 40 up 0.2% and Germany’s DAX climbing 1.3%. However, South Korea’s Kospi index slipped by 0.1%, reflecting mixed regional performance.
What’s Next?
- Economic Reports: U.S. job openings, unemployment claims, and November jobs data are set to be released.
- Market Watch: Focus on the Federal Reserve’s response to upcoming economic indicators.
- Global Trade: Further developments on Trump’s tariff threats and their potential implications.
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