U.S. Stocks See Fourth Week Of Growth, Nvidia’s Slide

U.S. stocks ended higher on Friday, marking a fourth straight week of gains. However, notable exceptions to this upward trend were observed in the communication services and Technology sectors.

Trading volumes were impacted by the Thanksgiving holiday, with many away for the long weekend.

Friday’s economic calendar had only the S&P Global Flash U.S. Composite PMI, revealing a drop in private sector employment for November—the first since June 2020.

Nvidia Corp. slid after reports that the company delayed the launch of a new artificial-intelligence chip for its Chinese customers.

Concurrently, there were signs indicating a potential struggle in the bond rally as ten-year U.S. yields approached 4.5%.

A court ruling led Germany to suspend its debt ceiling, causing 10-year German Bunds to rise. This movement was mirrored in other European rates, subsequently impacting U.S. Treasuries.

For the week, the Dow saw an increase of 1.27%, while the S&P 500 and Nasdaq Composite rose by 1% and 0.89%, respectively.

Here are the closing levels on Friday, November 24th, 2023: 

 Last  Change  Change%
DOW JONES 35390.15 +117.12 +0.33%
S&P 500 4559.34 +2.72 +0.06%
NASDAQ 14250.85 -15.01 -0.11%
U.S. 10Y 4.466%
VIX 12.46 -0.34 -2.66%

The shortened trading week due to the holiday meant limited market activity.

Notable events included Nvidia’s stock decline following a strong earnings report and the rise in Treasury yields.

Retail investors displayed significant confidence, as evidenced by a net purchase of +$4.8B in cash equities. This marks the highest weekly inflow since April 2022.

The influx of capital indicates strong confidence among investors. This sentiment is bolstered by expectations of the Fed halting rate hikes and the possibility of an impending rate cut.

However, signs of market fatigue may be emerging. Following four consecutive weeks of gains, profit-taking is a reasonable expectation as the year-end approaches.

Unless major negative news emerges, any potential market decline is likely to be met with buyers looking to capitalize on dips.

Wishing you a belated Happy Thanksgiving!

Source: CBOE, Bloomberg

This commentary is written by James Gomes, a seasoned finance industry veteran with extensive experience of over 30 years, including a substantial tenure at a reputable U.S. bank exceeding 20 years.


Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

[Disclaimer]
This information is addressed to the general public solely for information purposes and should not be taken as investment advice, recommendation, offer, or solicitation to buy or sell any financial instrument. The information displayed herein has been prepared without any reference or consideration to any particular recipient’s investment objectives or financial situation. Any references to the past performance of a financial instrument, index, or a packaged investment product shall not be taken as a reliable indicator of its future performance. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners, and their respective employees, as well as managers, make no representation or warranties to the information displayed and Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners and their respective employees, as well as managers, shall not be liable for any direct, indirect, special or consequential loss or damages incurred a result of any inaccuracies or incompleteness of the information provided. Doo Prime and its holding company, affiliates, subsidiaries, associated companies, partners, and their respective employees, as well as managers, shall not be liable for any direct, indirect, special, or consequential loss or damages incurred as a result of any direct or indirect trading risks, profit, or loss arising from any individual’s or client’s investment.

Share the Post:

Related Posts