Market Summary: December 11, 2024

Market Summary: December 11, 2024

Key Highlights:

S&P 500: Gained 0.8% as inflation data aligned with forecasts, boosting expectations of a Federal Reserve rate cut next week.

Nasdaq Composite: Soared 1.8%, closing above 20,000 for the first time, driven by strength in tech stocks.

Dow Jones: Fell 0.2% as performance lagged in other sectors.

Top Gainers in the S&P 500

Broadcom (AVGO):

Gain: +6.6%

Reason: Shares surged following reports of a partnership with Apple (AAPL) to develop a new AI chip, code-named Baltra.

Tesla (TSLA):

Gain: +5.9%

Reason: Stock hit a record high as the company announced plans to develop a low-cost electric vehicle, expected to launch next year. Analysts raised price targets, citing optimism about Tesla's leadership under the incoming presidential administration.

EQT Corp. (EQT):

Gain: +5.9%

Reason: Rising natural gas prices fueled by colder temperatures boosted demand, benefiting natural gas stocks like EQT.

GE Vernova (GEV):

Gain: +5.0%

Reason: The energy firm declared a new quarterly dividend, announced a $6 billion stock buyback plan, and raised its 2025 outlook for sales and free cash flow.

Top Losers in the S&P 500

Texas Pacific Land (TPL):

Loss: -6.9%

Reason: Shares fell as recent volatility erased gains from its addition to the S&P 500. The company is exploring alternative revenue sources, including data centers and renewable energy projects.

CVS Health (CVS):

Loss: -6.2%

Reason: Congressional proposals for pharmacy benefit management (PBM) divestiture weighed heavily on CVS and other healthcare companies with PBM operations.

Uber Technologies (UBER):

Loss: -5.8%

Reason: Shares dropped after General Motors (GM) exited its Cruise self-driving taxi initiative, raising concerns about competition in the robo-taxi market.

Walgreens Boots Alliance (WBA):

Loss: -5.6%

Reason: Shares fell after reversing a portion of the previous day’s rally, which was driven by private equity buyout rumors.

Market Context

The release of November's Consumer Price Index (CPI) report showed inflation remaining sticky but meeting expectations. This bolstered investor confidence in a potential interest rate cut at the Federal Reserve's upcoming policy meeting.

Tech stocks continued to shine, contributing to the Nasdaq Composite's historic rise above 20,000 points. Meanwhile, natural gas stocks benefited from a spike in fuel demand due to colder temperatures, while some healthcare and transportation companies faced headwinds from regulatory and market pressures.