Nasdaq Index, Dow Jones, S&P 500 News: Mixed Market Trends Follow US Thanksgiving Holiday

Highlights

• U.S. stocks steady after Thanksgiving; retail sector in focus.
• Economic data suggest potential slowdown, yet no recession.
• Fed’s rate hikes impact market sentiment and trends.

U.S. Stocks Display Cautious Optimism Post-Thanksgiving

In the first trading session following Thanksgiving, U.S. stocks showed subdued movement, with investors closely monitoring retail activity as Black Friday sales commenced. Despite a slow start, the main U.S. stock indexes, including the S&P 500, are on track for their fourth consecutive week of gains, fueled by expectations that the Federal Reserve may pause interest rate hikes and signs of enduring economic strength.

Retail Sector Focus Amid Economic Slowdown

The focus is now on retailers, who are gearing up for significant Black Friday sales, hoping for robust consumer spending. This comes as lower oil prices and declining inflation are expected to boost purchasing power, potentially offsetting recent cautious sentiments in retail earnings reports. However, the S&P 500 retail sector sub-index saw a slight decline.

Economic Indicators and PMI Data

Market sentiment was also influenced by recent economic data, including reports on jobless claims and durable goods, suggesting the U.S. economy could be slowing but might avoid a recession. The S&P Global’s flash U.S. Composite Purchasing Managers Index indicated steady business activity in November, with a slight increase in services sector activity balancing a contraction in manufacturing.

Impact of Federal Reserve Policies

The anticipation of economic moderation in the current quarter is linked to the cumulative effects of the Federal Reserve’s aggressive interest rate hikes since March 2022. The central bank’s policy rate increases have totaled 525 basis points, reaching a range of 5.25%-5.50%.

Individual Stock Movements and Market Trends

In individual stocks, Nvidia experienced a slight decline, while iRobot surged following acquisition news. Vista Outdoor also saw gains after a merger offer. The U.S.-listed shares of Chinese EV maker Xpeng advanced after Volkswagen announced a new EV platform development in China. Overall, advancing issues outnumbered decliners on both the NYSE and Nasdaq, with the S&P index recording new highs.

Technical Analysis

The E-mini S&P 500 Index, currently at 4564.25, is trading above its key moving averages, with the 200-day average at 4298.39 and the 50-day average at 4371.41. This positioning above both averages suggests a bullish trend in the medium term.

The index is slightly above its minor support level of 4494.00, indicating that it could maintain its upward trajectory. However, it’s approaching the minor resistance at 4562.50, which could be a pivotal point for future price action.

If it breaks through this resistance, there could be potential for further upward movement. Conversely, falling below the minor support could lead the index towards the main support at 4424.50.

Overall, the market sentiment for the E-mini S&P 500 Index, given its current position relative to these technical indicators, leans towards bullishness.