On Friday 29th November 2024, the Dow Jones reached a new record high, closing at 44,910 points after breaching 45,000 temporarily
This formed part of a wider market surge that led the S&P 500 and Nasdaq Composite to also hit record peaks. It concluded a remarkable month for the stock market, marked by the Dow achieving its most substantial monthly gain of the year, all thanks to Trump winning the U.S. election.
In November, the S&P 500 experienced a 5.73% rise, and the Dow Jones Industrial Average recorded a notable 7.54% increase, both marking their most robust monthly performances for the year. Concurrently, the Nasdaq Composite enjoyed a 6.21% surge, its largest monthly gain since May.
Recently, a host of factors have pumped up investors’ sentiment for stocks.
The presidential election concluded with Donald Trump decisively securing the presidency. This eliminated any uncertainty, which is often disliked by investors. Additionally, Trump’s support for the stock market, tax cuts, cryptocurrency, and deregulation is well-received by investors.
The U.S. economy expanded at an annualised rate of 2.8% in the third quarter. Although the gross domestic product is projected to grow by 1.31% in the fourth quarter, this still signifies an expansion, countering concerns of a potential recession hitting the U.S. economy.
Even a slowing growth rate can have its advantages. It provides the U.S. Federal Reserve with greater motivation to implement a second rate cut this year at its December 2024 meeting, potentially boosting economic activity.
Moreover, the seasonal strength of stocks in November 2024 has infused investors with a sense of optimism.
Entering December 2024, it’s challenging to disregard the current bull market, given the favourable conditions.
U.S. stocks are experiencing a robust year-end rally, partly due to short sellers being compelled to purchase stocks to close their positions as the year concludes.
This surge of buying could propel the S&P 500 to reach 6,300, suggesting a 5% increase for December 2024 and a 32.1% rise throughout 2024, surpassing the 24.2% gain seen in 2023.
Additionally, there’s the significant boost in cryptocurrency values, often referred to as the ‘Trump pump,’ – and this too is currently underway.
Dow Jones one-day chart as of 29th November 2024
