Dow Jones rallies to year's highest close, caps blockbuster month | Mint
Active Stocks
Tue Feb 20 2024 15:54:00
  1. Power Grid Corporation Of India share price
  2. 287.95 4.16%
  1. HDFC Bank share price
  2. 1,453.75 2.59%
  1. Tata Steel share price
  2. 141.05 -0.60%
  1. NTPC share price
  2. 345.65 2.01%
  1. ITC share price
  2. 406.05 -0.77%
Business News/ Markets / Stock Markets/  Dow Jones rallies to year's highest close, caps blockbuster month
BackBack

Dow Jones rallies to year's highest close, caps blockbuster month

The S&P 500 and the Nasdaq notched their largest monthly percentage gain since July 2022. November was the Dow's best month for percentage gains since October 2022.

Dow Transports, considered a barometer of economic health, advanced 1.4%. (Getty Images via AFP)Premium
Dow Transports, considered a barometer of economic health, advanced 1.4%. (Getty Images via AFP)

The Dow Jones Industrial Average closed at its highest level since January 2022 as investors crossed the finish line of a banner month for stocks and viewed cooling inflation data as a harbinger of easing Federal Reserve monetary policy.

The Dow was the clear outperformer, with a solid boost from Salesforce on the heels of its consensus-beating earnings report.

The S&P 500 closed modestly green, while tech and tech-adjacent momentum stocks, led by Nvidia, pulled the Nasdaq into negative territory.

Still, the S&P 500 and the Nasdaq notched their largest monthly percentage gain since July 2022. November was the Dow's best month for percentage gains since October 2022.

Also Read: 7 things that changed for the stock market overnight - Gift Nifty, Dow Jones' rally, OPEC output cut to India GDP growth

"We're putting the cherry on top of a banner month," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "It's a nice reminder for investors how worried everyone was a month ago, and we just finished one of the best months in history for stocks."

Among data released Thursday, the Commerce Department's closely watched Personal Consumption Expenditures (PCE) report showed inflation is cooling as expected, along with consumer spending. The data reinforced expectations that the Fed has completed its rate hiking cycle.

While New York Fed President John Williams reiterated the central bank's determination to remain data dependent, he would not rule out the possibility of further rate hikes if inflation fails to continue to moderate.

(Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

"Kicking off much of the strength this month was the realization that inflation is quickly coming back to earth we saw that again today with core PCE data suggesting inflation is no longer a major headwind," Detrick added.

Financial markets have priced in a 95.8% likelihood that the central bank will let its key Fed funds target rate stand at 5.25%-5.50% at December's policy meeting.

"There's likely no rate hikes any time soon, the next move will likely be a cut, probably in the middle of next year," Detrick said. "The massive drop in (Treasury) yields this month is the bond market's way of saying it thinks the Fed is indeed done raising rates."

Powell is scheduled to participate in two separate discussions on Friday, at 11 a.m. ET and 2 p.m. ET.

The Dow Jones Industrial Average rose 520.47 points, or 1.47%, to 35,950.89, the S&P 500 gained 17.22 points, or 0.38%, at 4,567.8 and the Nasdaq Composite dropped 32.27 points, or 0.23%, to 14,226.22.

Among the 11 major sectors of the S&P 500, healthcare stocks outperformed, while communication services suffered the steepest percentage decline.

Dow Transports, considered a barometer of economic health, advanced 1.4%.

Also Read: Nifty 50, Sensex today: What to expect from stock market indices in trade on December 1

Salesforce jumped 9.4% following the company's higher-than-expected profit forecast based on solid demand for its cloud services.

Ford Motor Co slid 3.1% after the automaker set the cost of a new labor deal at $8.8 billion and cut its full-year forecast.

Data cloud company Snowflake surged 7.1% after it forecast fourth-quarter product revenue above Street estimates.

Pinterest and Snap Inc gained 2.4% and 6.5%, respectively, after Jefferies' upgrade of the social media firms to "buy" from "hold."

Advancing issues outnumbered decliners on the NYSE by a 1.62-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored decliners.

The S&P 500 posted 37 new 52-week highs and two new lows; the Nasdaq Composite recorded 75 new highs and 109 new lows.

Volume on U.S. exchanges was 13.22 billion shares, compared with the 10.55 billion average for the full session over the last 20 trading days.

Catch Live Market Updates here

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Dec 2023, 08:28 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App