U.S. stocks reached new heights on Tuesday, continuing their strong performance this year. The S&P 500 rose by 2 points, marking its 55th record high of 2024. This marks a significant rally, with the index climbing in 10 out of the last 11 days, positioning it for one of the best years in nearly two decades. Meanwhile, the Dow Jones Industrial Average dropped 76 points, or 0.2%, while the Nasdaq Composite added 0.4%, continuing its upward momentum from the previous day.
AT&T Stock Surges After Profit Forecast Update
AT&T saw a 4.6% increase in its stock price after raising its annual profit forecast. The telecom giant also unveiled a $10 billion stock buyback program, with plans to repurchase an additional $10 billion worth of stock in 2027, which boosted investor confidence.
U.S. Steel Stock Drops Following Acquisition Concerns
On the downside, U.S. Steel fell 8% after President-elect Donald Trump reiterated his opposition to the $14.1 billion acquisition proposal from Nippon Steel. Trump’s comments reflect growing concerns about the deal’s potential impact on workers, supply chains, and U.S. national security. This follows earlier resistance from President Joe Biden to the acquisition.
Tesla Faces Setback Over Executive Pay Package
Tesla shares sank by 1.6% after a Delaware judge reaffirmed a ruling requiring the electric car maker to rescind Elon Musk’s multibillion-dollar pay package. Despite attempts by Musk and Tesla’s corporate directors to have the decision overturned, the court upheld its original ruling, dealing a blow to the company’s leadership.
Treasury Yields Remain Steady Amid Economic Optimism
In the bond market, Treasury yields remained relatively stable. The yield on the 10-year Treasury bond rose slightly to 4.23% from 4.20%. Optimism about a potential U.S. recession easing was fueled by a report showing an increase in job openings at the end of October, bolstering hopes for continued economic stability.
Key Economic Data to Impact Federal Reserve’s Next Decision
Market participants are eagerly awaiting the monthly jobs report due this Friday, as it is expected to influence the Federal Reserve’s decision on interest rates. The report will reveal how many jobs were created or lost in November, though its reliability may be impacted by disruptions caused by storms and strikes in October.
International Markets See Mixed Results
International markets experienced varied outcomes. The value of South Korea’s currency dropped by 1.1% against the U.S. dollar, following political turmoil where President Yoon Suk Yeol declared and later lifted martial law. South Korean stocks that trade in the U.S., like SK Telecom, also fell by 1.6%.
Meanwhile, Japan’s Nikkei 225 index surged by 1.9%, driven by optimism that Japanese stocks might benefit from President Trump’s proposed tariffs, particularly those targeting Chinese goods.
China-U.S. Trade Relations Continue to Worsen
Tensions between China and the U.S. escalated as China announced a ban on exports of critical materials like gallium, germanium, and antimony, which are key to high-tech applications. This response follows the U.S. expanding its list of Chinese technology companies facing export restrictions.
Global Stock Markets React to Geopolitical Events
Stock indexes in China rose by 1% in Hong Kong and 0.4% in Shanghai, driven by speculation that Chinese leaders may introduce new economic stimulus plans. In France, the CAC 40 rose 0.3%, despite ongoing political instability as the government struggles to address budget issues.
Conclusion
The U.S. stock market remains resilient, with record highs for the S&P 500 and Nasdaq, while international markets react to geopolitical events and economic data. Investors are closely monitoring upcoming reports that could influence key economic decisions, especially those from the Federal Reserve. U.S. Steel and Tesla face challenges, but AT&T and Nikkei stocks show signs of strength in a volatile market.
