The S&P 500 and Nasdaq reached new record highs on Friday after a strong November jobs report.
Divergence between permanent job losses (blue) and temporary layoffs (orange) continued in November, with former rising and latter falling pic.twitter.com/yTIpX2ZQa2
— Liz Ann Sonders (@LizAnnSonders) December 6, 2024
The data showed nonfarm payrolls increased by 227,000 last month, exceeding estimates and rising significantly from October’s revised gain of 36,000. The unemployment rate ticked up to 4.2% as expected.
November average hourly earnings +4% year/year vs. +3.9% est. & +4% prior pic.twitter.com/R1m5QlsGTb
— Liz Ann Sonders (@LizAnnSonders) December 6, 2024
Luke O’Neill, portfolio manager at Catalyst Funds, said, “You’re seeing a labor market that is not weak but is definitely softening, and that is what is giving traders more confidence in the 25 basis-point rate cut at the upcoming meeting.”
Consumers shifted heavily toward online shopping this Black Friday season. Bank of America economist Aditya Bhave noted, “Online retail spending (card not present) in the week ending Nov. 30 was up 7.9% compared to the week after Black Friday in 2023.
Market Alert | USA: The S&P 500 and Nasdaq Composite hit fresh records on Friday
#USA #WallStreet pic.twitter.com/cDjlitxSGe— ET NOW (@ETNOWlive) December 7, 2024
Brick & mortar retail was down 0.3%, even though nearly every spending category saw gains.”
A high level of consumers plan to buy new vehicles in the next 12 months, according to Bank of America’s December consumer survey. Plans to buy new appliances also increased slightly, while plans to buy a new home decreased to 19%.
New record highs for markets
HSBC forecasts the S&P 500 will rise to 6,700 by the end of 2025, implying over 10% upside from Thursday’s close. The index has already gained more than 27% this year. Video game stocks are surging, with the sector on pace for a record 14th straight positive session.
The ESPO Gaming and Esports ETF is set for a fresh all-time high. Notable names within the group are showing significant weekly gains. The South Korean won weakened 0.6% against the dollar to 1,423.97 on Friday, ahead of a vote on whether to impeach President Yoon Suk Yeol.
The won has declined sharply this week, dropping 2%. UBS advised investors to remain bullish on global equities despite potential tariff threats next year. The bank cited the resilience of the US economy and strong corporate earnings as key positive factors.
