{"id":48605,"date":"2024-12-20T22:28:34","date_gmt":"2024-12-20T22:28:34","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/"},"modified":"2024-12-20T22:28:34","modified_gmt":"2024-12-20T22:28:34","slug":"market-surge-sp-500-rallies-1-1-on-cooler-inflation-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/","title":{"rendered":"Market Surge: S&#038;P 500 Rallies 1.1% on Cooler Inflation Data"},"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\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Stock_Market_Recap_Why_Was_the_Market_Up_Today\" >Stock Market Recap: Why Was the Market Up Today?<\/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\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Major_Market_Indexes_Performance\" >Major Market Indexes Performance<\/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\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Key_Market_Drivers\" >Key Market Drivers<\/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\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Sector_Performance_and_Notable_Stocks\" >Sector Performance and Notable Stocks<\/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\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#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-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Market_Outlook_and_Analyst_Perspectives\" >Market Outlook and Analyst Perspectives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-surge-sp-500-rallies-1-1-on-cooler-inflation-data\/48605\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Stock_Market_Recap_Why_Was_the_Market_Up_Today\"><\/span>Stock Market Recap: Why Was the Market Up Today?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The U.S. stock market ended the week on a high note Friday, December 20, 2024, as investors cheered cooler-than-expected inflation data. This positive turn helped alleviate some of the losses incurred earlier in the week following the Federal Reserve&#8217;s hawkish stance on interest rate cuts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_Market_Indexes_Performance\"><\/span>Major Market Indexes Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> (^GSPC):<\/b> The benchmark index rallied 1.1%, gaining 63.77 points to close at 5,930.85. This surge helped trim the week&#8217;s losses to 2%.<\/p>\n<p><b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (^DJI):<\/b> The Dow jumped nearly 500 points, or 1.2%, ending the session at 42,840.26.<\/p>\n<p><b>Nasdaq Composite (^IXIC):<\/b> The tech-heavy Nasdaq gained 1%, adding 199.83 points to finish at 19,572.60.<\/p>\n<p><b>Russell 2000 (^RUT):<\/b> The small-cap index rose 0.9%, or 20.87 points, to 2,242.37.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Market_Drivers\"><\/span>Key Market Drivers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market&#8217;s upward momentum was primarily fueled by the release of the Personal Consumption Expenditures (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PCE\">PCE<\/a>) price index, the Federal Reserve&#8217;s preferred inflation gauge. The core PCE price index, which excludes volatile food and energy prices, rose 0.1% month-over-month in November, lower than the expected 0.2% increase. This data suggests that inflation might be cooling faster than anticipated, potentially influencing the Fed&#8217;s future monetary policy decisions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sector_Performance_and_Notable_Stocks\"><\/span>Sector Performance and Notable Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While eight of the eleven S&#038;P 500 sectors remained in negative territory for December, several big tech stocks continued to show strength:<\/p>\n<p>1. Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>): Up 26% in December<br \/>2. Alphabet (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GOOGL\">GOOGL<\/a>): Gained over 12% this month<br \/>3. Broadcom (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AVGO\">AVGO<\/a>): Surged 35% after forecasting strong demand for AI chips<\/p>\n<p>However, the market rally remains somewhat narrow, with the number of declining S&#038;P 500 components outpacing advancers for 13 consecutive sessions as of Wednesday.<\/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 are closely watching several key events that could impact market performance in the coming days:<\/p>\n<p>1. <b>Government Shutdown Concerns:<\/b> A potential partial government shutdown looms as lawmakers struggle to reach a funding agreement.<\/p>\n<p>2. <b>&#8220;Santa Claus Rally&#8221; Expectations:<\/b> Historically, the last five trading days of the year and the first two of the new year often yield positive returns. However, the strong November performance may have front-loaded some of these gains.<\/p>\n<p>3. <b>Year-End Portfolio Rebalancing:<\/b> Institutional investors may make significant moves to adjust their holdings before the year&#8217;s end.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook_and_Analyst_Perspectives\"><\/span>Market Outlook and Analyst Perspectives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the day&#8217;s gains, some analysts remain cautious about the market&#8217;s near-term prospects:<\/p>\n<p>Matt Maley, chief market strategist at Miller Tabak, warned that rising Treasury yields could put pressure on equity valuations, especially given the S&#038;P 500&#8217;s current forward price-to-earnings ratio of 21.6, well above its historical average of 15.8.<\/p>\n<p>Chuck Carlson, CEO of Horizon Investment Services, suggested that this week&#8217;s pullback might have eliminated some frothy sentiment, potentially setting up the market for a rebound.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As 2024 draws to a close, the U.S. stock market demonstrated resilience, bouncing back from mid-week losses triggered by the Federal Reserve&#8217;s cautious outlook on rate cuts. The unexpected decline in core PCE inflation provided a much-needed boost to investor sentiment. However, challenges remain, including potential government shutdown risks and concerns about market valuation.<\/p>\n<p>Investors will be closely monitoring economic data and policy developments in the coming weeks, hoping for a strong finish to what has been a robust year for U.S. equities. As always, maintaining a diversified portfolio and staying informed about market trends will be crucial for navigating the evolving financial landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stock Market Recap: Why Was the Market Up Today? The U.S. stock market ended the week on a high note [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[94],"tags":[4,2919,3749,3768],"class_list":["post-48605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update","tag-tsla","tag-avgo","tag-pce","tag-googl"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/48605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=48605"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/48605\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=48605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=48605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=48605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}