{"id":48563,"date":"2024-12-13T15:28:50","date_gmt":"2024-12-13T15:28:50","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/"},"modified":"2024-12-13T15:28:50","modified_gmt":"2024-12-13T15:28:50","slug":"stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/","title":{"rendered":"Stock Market Today: Nasdaq Leads Gains Amid AI Optimism and Rate Cut Expectations"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Market_Performance\" >Market Performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Driving_Factors\" >Driving Factors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Major_Stock_Movements\" >Major Stock Movements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Upcoming_Market_Events\" >Upcoming Market Events<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Market_Outlook\" >Market Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/stock-market-today-nasdaq-leads-gains-amid-ai-optimism-and-rate-cut-expectations\/48563\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Market_Performance\"><\/span>Market Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Friday, December 13, 2024, the U.S. stock market is showing mixed performance, with technology stocks leading the way. As of the latest data:<\/p>\n<p>&#8211; The <b><a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=SPX\">SPX<\/a>)<\/b> is up 0.3% at 6,069.40<br \/>&#8211; The <b>Nasdaq Composite (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=COMP\">COMP<\/a>)<\/b> is outperforming, rising 0.5% to 20,002.35<br \/>&#8211; The <b><a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=DJI\">DJI<\/a>)<\/b> is struggling to break its losing streak, up just 0.1% at 43,958.56<\/p>\n<p>This follows a challenging session on Thursday, where all three major indexes closed lower. The S&#038;P 500 dropped 0.5% to 6,051.25, the Nasdaq Composite fell 0.7% to 19,902.84, and the Dow Jones Industrial Average shed 0.5% to 43,914.12.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Driving_Factors\"><\/span>Driving Factors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>AI Optimism:<\/b> The market&#8217;s positive sentiment is largely driven by continued enthusiasm for artificial intelligence (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AI\">AI<\/a>) technologies. Chipmaker Broadcom (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AVGO\">AVGO<\/a>) has provided a significant boost to the tech sector after forecasting quarterly revenue above Wall Street estimates and predicting booming demand for its custom AI chips.<\/p>\n<p><b>Interest Rate Expectations:<\/b> Investors are increasingly confident about a potential interest rate cut by the Federal Reserve. The CME FedWatch tool shows a 96.4% probability of a 25 basis point cut in December, up from 66% at the beginning of last week. If realized, this would bring the total reduction in the Fed funds rate to 1% in 2024.<\/p>\n<p><b>Economic Data:<\/b> Recent economic indicators have been mixed. The producer price index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PPI\">PPI<\/a>) for final demand rose 0.4% in November, higher than the expected 0.2%. Year-over-year, PPI increased 3%. Initial jobless claims also increased more than anticipated, rising by 17,000 to 242,000 for the week ended December 7.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_Stock_Movements\"><\/span>Major Stock Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Several stocks are making significant moves today:<\/p>\n<p>1. <b>Broadcom (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AVGO\">AVGO<\/a>)<\/b>: Up 15% following its strong forecast and AI chip demand outlook.<br \/>2. <b>Marvell Technology (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MRVL\">MRVL<\/a>)<\/b>: Rising 5.6% in sympathy with Broadcom&#8217;s positive news.<br \/>3. <b>Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>)<\/b>: The AI bellwether is up 1.1%, continuing its strong performance.<br \/>4. <b>Micron Technology (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MU\">MU<\/a>)<\/b>: Gaining 2% amid the positive sentiment in the chip sector.<br \/>5. <b>Salesforce (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CRM\">CRM<\/a>)<\/b>: Up 1.8% after an upgrade to &#8220;overweight&#8221; from KeyBanc.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events\"><\/span>Upcoming Market Events<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors should keep an eye on these upcoming events that could impact market performance:<\/p>\n<p>1. <b>Federal Reserve Meeting:<\/b> The Fed&#8217;s next meeting is scheduled for December 17-18, where a potential rate cut decision will be closely watched.<br \/>2. <b>Earnings Reports:<\/b> While specific dates weren&#8217;t provided, investors should monitor upcoming earnings releases from major companies for insights into corporate performance and economic health.<br \/>3. <b>Economic Data Releases:<\/b> Upcoming reports on inflation, employment, and consumer spending will be crucial for assessing the economy&#8217;s direction and potential Fed actions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook\"><\/span>Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As 2024 draws to a close, the stock market is on track for impressive gains. The S&#038;P 500 is poised to climb more than 25% this year, potentially marking the first time the index has produced a total return above 25% in two consecutive calendar years since the late 1990s.<\/p>\n<p>However, market breadth remains a concern. The S&#038;P 500 has seen more stocks declining than advancing for nine consecutive sessions, a phenomenon not observed since September 2001. This narrow market leadership, primarily driven by large-cap tech stocks, could potentially lead to increased volatility in early 2025.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we approach the end of 2024, the stock market continues to be driven by AI optimism and expectations of a more dovish Federal Reserve. While major indexes are near record highs, investors should remain vigilant about potential risks, including narrow market breadth and mixed economic signals. As always, a diversified portfolio and a long-term investment strategy remain prudent in navigating the ever-changing financial landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Performance On Friday, December 13, 2024, the U.S. stock market is showing mixed performance, with technology stocks leading the 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