4:07pm: Fresh records
The Nasdaq and the S&P 500 closed at new record levels on Monday led by gains among tech giants like Tesla and Apple, which added 3.5% and 1% respectively.
The Nasdaq added 1% at 19,403 points while the S&P 500 added 0.2% at 6,407 points. The Dow Jones, on the other hand, fell 0.3% at 44,782 points.
2:50pm: Broader gains predicted
The US stock market rally is set to continue, according to Bank of America’s equity and quantitative strategy team who have set a year-end 2025 target of 6,666 for the S&P 500.
This represents an approximately 10.5% gain from the index’s current level.
"We see more opportunities in stocks than the index," analysts wrote in a note. "In particular, we like companies with healthy cash return prospects and a tether to the US economy: large cap Value stocks."
Top picks are “GDP sensitive companies” with analysts awarding sectors including Financials, Consumer Discretionary, Materials, Real Estate and Utilities ‘Overweight’ ratings.
Broader-based gains are seen across the S&P 500, following a period of outperformance by the “Magnificent Seven” – referring to tech stocks Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia.
"Euphoria around mega-cap tech is evident in growth expectations for the Magnificent Seven approaching all-time highs, just when their earnings are slated to decelerate and the average company's earnings are slated to accelerate," analysts wrote.
1:25pm: Wall Street mixed
Tech stocks continued to power ahead in the early afternoon, with the Nasdaq adding 0.9% at 19,388 points.
The S&P 500 was up 0.2% at 6,048 points while the Dow Jones slipped 0.2% at 44,806 points.
Meanwhile, the S&P 500 Consumer Discretionary index, which includes names like Amazon and Tesla, hit a new record high on Monday.
12:50pm: CEO exit pushes Intel higher
Shares of Intel Corp (NASDAQ:INTC, ETR:INL) moved higher in the early afternoon, adding almost 5% at about $25, following the announcement of CEO Pat Gelsinger after less than four years in the role.
Gelsinger assumed leadership of Intel in 2021, aiming to usher the company into a new era of microchip manufacturing.
Facing a shrinking share of the home computing market, he focused on enhancing Intel’s chip production capabilities to compete with industry leaders like TSMC and Samsung for blue-chip clients.
However, a series of missteps, notably the failure to invest in advanced extreme ultraviolet (EUV) lithography technology, hindered Intel's ability to achieve meaningful progress.
Meanwhile, Gap Inc (NYSE:GPS) shares jumped almost 7% after the clothing retailer was upgraded to ‘Overweight’ from ‘Neutral’ by analysts at JPMorgan.
Analysts also boosted their price target on the stock to $30 from $28.
The analysts’ improved outlook comes after a meeting with Gap’s CEO Richard Dickson and CFO Katrina O'Connell.
They praised Gap CEO Richard Dickson’s “reinvigoration” of store brands, which include Gap, Banana Republic, Old Navy and Athleta.
11:09am: Big tech extends gains
US tech stocks extended their gains in the first hour of December trading on Wall Street, but the small and mid-caps of the Russell 2000 went into reverse.
The Nasdaq climbed 1% to a new all-time high just above 19,400, but has come off that level slightly.
Almost all of the big tech / Mag-7 and semiconductor names are up between 1% and 2.5%, with Nvidia being the exception, just above flat.
Super Micro is the biggest riser on that exchange, up 20% to almost $40 but still well off the $120 seen earlier in the year.
Of the other indexes, the S&P 500 is up 0.1% and the Dow Jones is down 0.3%, with the Russell down 0.4%.
10:39am: Manufacturing data is good, but not that good
The US ISM manufacturing index rebounded to 48.4 in November from 46.5, higher than expected following recent hurricanes and the end of the Boeing machinists' strike.
However this was "not as promising as it seems at face value" and the breakdown showed the sector is "still stuck in a rut", says Bradley Saunders, North America economist at Capital Economics.
"While the drop back in the prices paid component made a nice change from the recent strength in other price measures, we doubt it will do little to sway the Fed’s thinking given the more important releases still to come ahead of this month’s meeting."
The rebound in production was disappointingly small, says Saunders, despite hurricanes Helene and Milton passing and Boeing strike coming to an end.
A rise in employment leaves it consistent with employment having stayed flat last month, though the increase in the new orders index to an eight-month high was "promising and suggests December’s report could be stronger", while a fall in the prices paid component is another welcome development for the Fed given the recent strength in other price measures, he adds.
"But with the next rate decision set to be a close call and more important releases including last month’s employment report and CPI figures still to come before then, we doubt today’s data will do much to sway the Fed’s thinking."
10:09am: Big jump for Super Micro
Super Micro Computer Inc (NASDAQ:SMCI) has jumped 14% after an investigatioin, supported by outside legal counsel and a forensic accounting firm, found no evidence of misconduct and that no restatement of reported financials was expected.
The company’s stock slumped 62% after its previous auditor Ernst & Young resigned in October, citing concerns about governance transparency and internal controls over financial reporting.
This resulted in delays in the company filing its annual report for the year ending June 30, 2024, and September quarter report, and in turn, Super Micro received a notice of non-compliance from the Nasdaq.
But a review by a special committee found no evidence of fraud or misconduct from management or directors, and that the audit committee acted independently.
Adopting the committee's recommendations, the board has appointed a new chief accounting officer and approved plans to appoint a new CFO, as well as authorizing additional executive hires and other measures "to strengthen the company".
9:49am: Wall Street opens mixed, mostly higher
US shares are mostly higher, led by the Nasdaq Composite, which is up 0.6% as Amazon and Tesla are notable risers, along with semiconductor stocks like Broadcom, Super Micro Computer, Marvell and Intel.
The S&P 500 has risen 0.2% and the Russell 2000 has gained 0.35%.
The Dow Jones is the laggard, down 0.2% due to falls for Merck, Dow and Coca Cola.
Intel shares are up 2% after boss Pat Gelsinger's retirement was announced.
Jeep and Chrysler maker Stellantis NV (NYSE:STLA, EPA:STLA) is down 7% after its CEO parted company with the European-headquartered group.
9:25am: Intel CEO is out
Intel Corp (NASDAQ:INTC, ETR:INL) chief executive Pat Gelsinger is retiring after almost four years at the helm of the processor company, as it struggles to complete its turnaroud.
The group, a month after dropping out of the Dow Jones index following a 25-year stint, said Gelsinger will be replaced by a pair of interim CEOs in the form of chief financial officer David Zinsner and products boss Michelle Johnston Holthaus.
Frank Yeary, who was also named Intel’s interim chair, said: “Pat spent his formative years at Intel, then returned at a critical time for the company in 2021.”
8:15am: November was a good month for markets
Looking back at November, it was one of the best months of the year for the S&P 500 and the Dow Jones, which rose 5.3% and 6.8% respectively, while the Russell 2000 rose more than 10%.
For the S&P 500, as well as hitting another new record, the index enjoyed its strongest monthly performance of 2024.
The top-performing sectors on the S&P 500 last month were automobile producers (led by Elon Musk's Tesla), consumer electronics, the oil and gas sector and consumer finance, while the weakest performers include the gold index and semiconductors.
The leadership of the S&P 500 has shifted dramatically since Trump won the election, says market analyst Kathleen Brooks at XTB.
"Although Nvidia is one of the top performers on the S&P 500 this year, its position is dropping, and Texas Pacific Land, a real estate company, has taken its place as the second-best performer in the S&P 500 this year."
With December traditionally the "Santa rally" territory, especially for US stocks, Brooks says Federal Reserve rate cut hopes are "crucial for a stock market rally".
The question is whether Donald Trump will say something that could knock sentiment towards US stocks.
Deutsche Bank's Jim Reid notes that November also saw the euro post its largest decline against the US dollar in 18 months as investors contemplated the prospect of further tariffs.
He notes that Saturday was two years since ChatGPT was launched, since when there has been a 183% gain for the 'Magificant Seven' tech stocks and a 48% increase for the S&P 500,
"I don't think it's an understatement," he says, that this "might have played a significant part in the US avoiding a recession when the pressures in that direction were most acute.
"Financial conditions and the wealth effect have a big impact on the US economy. Who knows what would have happened if ChatGPT hadn't been launched then and the technology didn't emerge for a couple of years."
Nvidia, producer of most of the key chips to enable AI, is up a cool 717% since then.
Another interesting weekend development, Ried notes, is that Ukraine president Volodymyr Zelenskyy was open to a cease-fire that ceded control of land it has lost to Russia in return for NATO security guarantees over the remainder of the country.
"Although such a guarantee would be difficult to negotiate it does show that as Trump nears the office, the direction of travel will likely move towards peace talks even if the war escalates in the background as both sides try to strengthen their hands ahead of the inauguration."
7:20am: Nasdaq, S&P and Dow expected to start lower
US stocks are expected to slip lower on Monday, as the first trading day of December comes with the dollar boosted by comments from President-elect Donald Trump over the weekend.
Futures for the S&P 500, Nasdaq 100 and Dow Jones were all down 0.2%, while Russell 2000 futures were up 0.3%.
This followed one of the best months of the year for the S&P and the Dow Jones, which rose 5.3% and 6.8% respectively, while the small- and mid-cap Russell 2000 rose more than 10%.
Today, the greenback is up 0.5% versus the euro at $1.052 and bitcoin down 2% at $95.1K.
Analysts said this was in part due to Trump’s comments about the dollar's reserve currency status, following recent stories that the BRIC countries (Brazil, Russia, India and China) were planning moves to overthrow the USD's status as a global reserve currency.
Trump issued statement on his Trusth Social platform that his administration would “require a commitment from these (BRIC) countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy".
The sentiments behind these remarks are not new, says Jane Foley, senior FX strategist at Rabobank, but "are the first time since winning the US Presidential election last month that Trump has specifically referred to the BRIC countries in this context and the first time that he has publicly outlined his views on the USD’s reserve position since becoming President-elect.
"The remarks strengthen the view that Trump may not look to weaken the USD during his presidential term and will instead be relying on tariffs to tackle the US’s large goods trade imbalance."
US economic data on Monday includes the ISM and S&P manufacturing surveys, construction data and some Fedspeak.
This week is set to be busier than last, following the lull of Thanksgiving, with analysts expected a big focus on various important US jobs numbers, culminating in the non-farm payrolls report on Friday, something that could influence what is seen as a fairly tight December Federal Reserve decision.