The stock market reached record highs on Wednesday, with tech shares leading the charge following strong reports from Salesforce and Marvell Technology. The S&P 500 gained 0.61%, closing at 6,086.49, while the Nasdaq advanced 1.3% to 19,735.12. The Dow Jones Industrial Average added 308.51 points, or 0.69%, to close at 45,014.04.
All three major averages hit all-time highs during the session and closed at records, with the Dow ending above the 45,000 threshold for the first time. Salesforce shares climbed nearly 11% after the company posted earnings that beat estimates. Chipmaker Marvell Technology also exceeded earnings expectations and issued strong fourth-quarter guidance, surging 23%.
These moves powered the technology sector higher, ending the day up by 1.8%. Nancy Tengler, CEO of Laffer Tengler Investments, said, “People have come out and said, the tech trade’s over. If you look at sector performance, the stocks have lagged since July — but that doesn’t mean that they can’t reaccelerate.
You could argue that it’s good the market’s broadening out. But that doesn’t mean it has to be a zero-sum game, that technology cannot outperform.”
Wednesday’s moves come as investors await new U.S. employment data due Friday. Economists polled by Dow Jones expect the U.S. economy added 214,000 jobs in November.
A report released on Wednesday from ADP revealed that companies added just 146,000 jobs in November, while economists had estimated growth of 163,000 positions. The data could give investors insight into the Federal Reserve’s next policy moves. Markets showed little reaction on Wednesday after Fed Chair Jerome Powell said the economy was strong enough for the central bank to proceed cautiously on rate cuts.
“The labor market is better, and the downside risks appear to be less in the labor market. Growth is definitely stronger than we thought, and inflation is coming out a little higher. So the good news is that we can afford to be a little more cautious as we try to find neutral,” he said in a moderated discussion in New York.
Tech stocks drive record market gains
In other news, farmer sentiment has reached its highest point since May 2021, according to the latest reading from the Purdue University/CME Group Ag Economy Barometer. The barometer increased 30 points to 145 during the period, pointing to expectations for a more favorable future regulatory and tax environment for the agricultural sector.
Wolfe Research strategist Rob Ginsberg wrote in a Tuesday note that there seems to be more upside ahead for tech titans. “The relative performance of the MAG 7 looks ready to punch through its July high. We discussed MSFT yesterday, but others such as AAPL, META, and AMZN are coming alive as well,” he wrote.
UBS reported that more shoppers than expected showed up to brick-and-mortar retail stores this Thanksgiving. “We caught up with the National Retail Federation (NRF) on 2024 holiday consumer shopping trends, with an overall takeaway that Black Friday traffic came in above expectations at down -2% year-over-year versus NRF’s initial estimates of down -8%,” the bank wrote in a note. Barbie continued to be the top toy for girls in 2024, while LEGO toys continued to dominate for boys.
Robinhood CEO Vlad Tenev said Wednesday that the company is looking at entering the sports betting market, possibly in the form of event contracts. “We’re keenly looking into that space. Nothing to announce just yet, but it’s so important to our customers and in culture that we’re excited about it,” Tenev said at Robinhood’s inaugural investor day event.
Shares of Robinhood were up more than 2% in afternoon trading. The Korean won strengthened slightly, gaining 0.2% against the dollar on Wednesday. The dollar was last trading at 1,412.80 won.
The move higher comes a day after South Korea President Yoon Suk Yeol issued a martial law decree in a move that shocked the country and rattled financial markets. The won fell as low as the 1,442 won level Tuesday before the National Assembly voted to lift the martial law declaration. The technology sector, up 1.5%, led the S&P 500 higher on Wednesday.
Consumer discretionary and communication services stocks were the next highest performers. On the other hand, energy was the biggest laggard sector on Wednesday.
