Investors are waiting with bated breath for earnings and CPI data as the year-end market optimism hangs in the balance. Despite global instability and economic uncertainty intensifying worldwide, stocks have been relatively calm with the S&P 500 gaining 1% and the Nasdaq Composite jumping 3.3%. The Dow Jones Industrial Average fell over 0.5%, however.
The Nasdaq’s gains came as investors continued to make new highs, exceeding 220 stocks closing at a new 52-week high since October. Volatility has remained low, with the VIX closing at 12.77, just two points above its low for the year.
As the geopolitical world becomes increasingly volatile, investors are bracing themselves for potential changes in policy under the new administration set to take over Washington D.C. next month. However, economic data and earnings reports will provide crucial insights into the market’s trajectory.
Oracle is scheduled to report after the close today, with Adobe and Costco due out on Wednesday and Thursday respectively. The Consumer Price Index (CPI) report on Wednesday and Producer Price Index (PPI) on Thursday will also be closely watched.
Individual stocks such as Palantir are worth keeping an eye on, particularly as it approaches the end of the year when names in the Nasdaq 100 Index may change. Meanwhile, Nvidia is lower by 2% premarket after China launched an investigation into its AI chip business for potential antimonopoly law violations.
For now, market attention is focused on the S&P 500’s attempt to break through the 6100 level, while oil prices are up just under 1.5%. Regardless of market fluctuations, sticking with your investing plans and long-term objectives remains essential.
Source: https://www.forbes.com/sites/jjkinahan/2024/12/09/sp-500-chases-record-not-seen-this-century