The U.S. stock market posted another week of strong performances. Major large-cap indices such as the S&P 500, the Dow Jones, and the Nasdaq 100 extended their record highs. The technology and consumer discretionary sectors led the gains.
Several mega-cap tech giants — Apple, Amazon.com, and Meta Platforms — hit new peaks. In November, the U.S. labor market showed robust signs of recovery. Nonfarm payrolls rose by 227,000, up sharply from an upwardly revised 36,000 in October and above expectations of 220,000.
The unemployment rate inched up to 4.2%, as expected. Average hourly earnings saw moderate growth. The University of Michigan’s consumer sentiment index revealed the most favorable overall conditions in seven months.
This was bolstered by a significant rise in the current conditions subindex. However, the survey also highlighted growing concerns over inflation. Short-term inflation expectations rose.
A relevant share of consumers reported advancing purchases of durable goods due to fears of accelerating prices. Stellantis’ Carlos Tavares exited, intensifying market concerns after a 50% value drop in 2024. Leadership uncertainty now threatens recovery.
Nasdaq and S&P 500 reach highs
Analysts warn of escalating challenges in a highly competitive sector. Veteran trader Jason Shapiro urged caution on going “aggressively long” on risk assets.
This came after Bitcoin hit a new high of $100,000 and then retreated, as did stocks on Thursday. The warning highlights the importance of prudent risk management and strategic positioning in volatile markets. Fed Chair Jerome Powell likened Bitcoin to gold, describing it as virtual and digital.
His remarks underline Bitcoin’s growing status as a speculative asset and a store of value. There are 10 S&P 500 stocks that historically excel in December’s second half. They span industries from BlackRock to Western Digital Corp.
to Royal Caribbean Cruises. These consistent performers will again leverage what’s known as the Santa Rally effect. This presents investors with strong year-end opportunities.
Some experts attribute the rally to seasonal factors such as holiday shopping and investors wrapping up their books before the end of the year, ahead of a slower January. Billionaire Warren Buffett, known for being a penny pincher, used to hand out $10,000 cash Christmas gifts. Family members say he switched to giving stocks, advising recipients to either cash in or hold.
This shift came, according to reports, when recipients were spending the cash too quickly. This change embodies his investment philosophy, offering a practical lesson in building long-term wealth.
