S&P 500, Nasdaq Hit Record Highs as December Rally Kicks Off

Stocks
Source: Watcher Guru

The S&P 500 and Nasdaq hit new highs on December 2, 2024. This marked a strong start to the month’s December stock rally. The S&P 500 rose 0.24% to 6,047.15. The tech stock surge pushed the Nasdaq up by 1% to 19,403.95. Both reached these peaks during rising market volatility. Investors showed strong confidence in the market’s direction.

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Nasdaq and S&P 500 Surge in December Tech Rally Amid Market Volatility

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Image: Pixabay

Big tech stocks led the gains. The “Magnificent Seven” performed well. Apple hit new records. Tesla and Meta both rose over 3%. The S&P 500 showed strong market health. The December stock rally built on November’s gains, which were the best in a year. Market analysts see this as a sign of sustained momentum.

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Market Performance Highlights

The broader market’s strength stands out in today’s conditions:

  • The S&P 500 is up over 25% this year. It has stayed strong despite ongoing market volatility in 2024. Trading volumes remain robust across all sectors.
  • Nasdaq record highs keep coming. The index is up nearly 30% in 2024. Tech and AI stocks drove these gains. Institutional investors continue to favor growth stocks.
  • The Dow Jones is up almost 20%. It slipped 0.3% today but remains strong overall. Market breadth indicators suggest healthy participation.

Key Market Challenges

The December stock rally faces some key tests ahead. This week’s November jobs report could shift Fed policy. Fed Governor Christopher Waller might support rate cuts. But inflation numbers will matter most. Economists are closely watching these developments.

Political and Corporate Developments

Politics add to market volatility. President-elect Trump warned BRICS nations about new tariffs. He threatened 100% tariffs if they moved away from the dollar. The tech stock surge also faces company-specific issues. Intel fell after CEO Pat Gelsinger retired. Stellantis dropped when CEO Carlos Tavares left suddenly. These leadership changes create uncertainty.

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Yet the S&P 500 keeps climbing. The Nasdaq record highs continue. This suggests the market will remain healthy as 2024 ends. Trading patterns indicate sustained institutional support.