Market Update

Record Highs for S&P 500 and Nasdaq
Investing.com — The S&P 500 and Nasdaq closed at record highs on Monday, driven by strong tech stock performance following a stellar November.

At 4:00 PM ET (21:00 GMT), the S&P 500 rose 0.2% to a record closing high of 6,046.3, while the Nasdaq Composite surged 1% to a closing record high of 19,403.58. However, Dow Jones Futures fell 0.29%, or 128 points.

Intel Reverses Gains; Tesla Rally Continues

Intel Corporation (NASDAQ: INTC) reversed early gains and closed below the flatline. Intel announced the resignation of CEO Pat Gelsinger after a challenging term that saw the company lag in the AI race. Truist Securities noted that while Gelsinger made significant changes, they were not sufficient or swift enough.

Meanwhile, Super Micro Computer Inc (NASDAQ: SMCI) rose over 28%, boosting chip stocks after a committee found no misconduct among its leadership. Tesla Inc (NASDAQ: TSLA) jumped over 3% following an upgrade by Roth MTM, driven by expectations that CEO Elon Musk's ties with President-elect Donald Trump will be beneficial.

Focus on Tariffs and Fed Policy

Investors are analyzing tariff-related comments from President-elect Trump, who suggested imposing 100% tariffs on BRICS nations—such as China, Russia, and India—if they pursue a new rival currency. This adds a geopolitical aspect to market concerns.

With a mix of macro and micro developments, Vital Knowledge analysts noted, "The US equity narrative isn’t shifting dramatically, with favorable year-end/post-election seasonality and momentum contending against rich valuations and uncertainty regarding future expectations."

Fed Speak and Economic Data

The week begins with reports on manufacturing activity from S&P Global and the Institute for Supply Management, alongside construction spending figures for October. Later in the week, private payroll and job openings data will provide additional labor market insights.

Investors are observing comments from Fed officials, including Governor Christopher Waller and New York Fed President John Williams, for insights into monetary policy. With a strong jobs report expected on Friday, analysts warn that it may influence short-term Fed expectations.

Ahead of a speech by Fed Chair Jerome Powell, Governor Waller indicated support for a possible interest rate cut in December, with expectations of continued inflation decline. Atlanta Fed President Raphael Bostic echoed similar sentiments, emphasizing the need for further data to evaluate rate cut appropriateness at the Dec. 17-18 meeting.

(Ambar Warrick contributed to this article)