Today’s Stock Market Update
While the Dow Jones and Russell 2000 indexes rose today, the S&P and NASDAQ are down. Traders are winding down before Thanksgiving which sees the markets close, and they’ll close early on Friday, creating a long weekend for many.
Trading is low today.
The S&P and NASDAQ hit record heights yesterday, refecting investor and consumer confidence and optimism about 2025. Predictions are that all 4 indexes are headed for better times, and the Russell and DJIA specifically.
At this point, investors are looking for stocks with upside price potential and are selling off some over-bought, overpriced mega caps, to build their fortune over the next 5 years.
The top news yesterday was President Trump’s announcement of punishing tariffs on Canada and Mexico, who are major trading partners. It’s likely a negotiating ploy designed to make these countries comply with NATO, immigration, and drug importation issues, as well as their process of exporting China-made products into the US (backdoor trading).
Today, markets will see a flood of economic data, including housing sales numbers, a GDP and a important report on inflation. Inflation was reported at near-expected levels which might calm interest rate worries for businesses and investors. Yet, it isn’t moving the markets higher. The annual CPI inflation rate for the United States was 2.6% for the 12 months ending October, versus the previous rate increase of 2.4%, according to U.S. Labor Department data. Core PCE was up 2.8%. Fed meeting minutes released Tuesday suggest a gradual easing policy ahead.
“Economists at Bank of America expect annual inflation to remain “stuck” above 2.5%, higher than the Fed’s 2% target level, in part given the likelihood that Trump’s economic proposals, if carried out, would fuel price pressures. The economists now foresee just three rate reductions in the coming months, in December, March and June. And they expect the Fed to stop easing credit once its benchmark rate, now at 4.6%, reaches 3.9%.” — from PBS report.
As the chart above shows, inflation has been under control for some time, and with the word of the new DOGE cutting trillions of wasteful spending, inflation is looking beaten. Consumers and borrowers are being hit hard by the higher lending rates, but a number of economists including the FED believe high rates are a wonderful idea.
The index’s different directions reflect the rising fortunes of industrials and small caps in an expected positive business environment within 3 months. The rotation into industrials and small caps will quicken as interest rates subside and the economy begins to roll freely without regulations and high taxation.
Between February and May, we’ll see the markets awaken to a bolstered US economy under the Trump government.
The NASDAQ is struggling to keep its level perhaps against the belief that the MAG7 will have a tough time climbing further on their record heights.
JP Morgan’s global equity strategy team forecasts the S&P 500 (^GSPC) will hit 6,500 by the end of 2025, agreeing with predictions from Goldman Sachs and Morgan Stanley. The target represents about an 8% increase from current levels.
Others including Ed Yardeni quoted yesterday in a CNBC interview says the S&P could hit 7,000 by end of 2025.
JP Morgan’s Lakos-Bujas, their global equity strategy team wrote that continued “US exceptionalism,” continued earnings growth, and interest rate cuts from the Federal Reserve will be a tailwind for stocks in the year ahead. He argued the US is likely to remain the “global growth engine with the business cycle in expansion, healthy labor market, broadening of AI-related capital spending, and prospect of robust capital market and deal activity.”
Investors Spirit: The Trump Trade?
Investors will be listening more keenly now to President Trump and his plan to bring the economy back to health and support the stock market.
If the “Trump trade” is a real thing, and expert forecasters including Tom Lee of Fundstrat believe it is, then the Dow and Russell 2000 will go much further. Small caps and small business in general have been plagued with high interest rates, inflation and high taxes.
If it is all about inflation and a likely return to Pro-USA FED economic policies, then US stocks are looking really promising. Today’s reports of lower inflation and yesterday’s great US GDP report gave the markets a good lift.
The best stocks of late include pharmaceuticals and health stocks as you see below. Aveanna Healthcare is on a tear as is Longboard pharmaceuticals. Keep your eye on their latest growth. This chart below is ranked by real performance in the last 30 days.
Inflation Easing Steadily?
Truflation’s Inflation index shows a progressive upward inflationary trend. That will buoy the 5 year and long term forecasts. See more on the weekly, three month and six months projections. If it’s all about inflation, then investors should be moving their money out of money markets and bank accounts now to get in on what could be a once in a lifetime burst in value.
Best Performing Sectors Today
The best-performing sectors today are consumer staples, health care, and real estate.
TESLA Real Time
Google Stock Real Time
Amazon Stock Real Time
There’s a number of investing sites and data sources which help you get quotes on today’s prices and more on the current status of the S&P 500, Dow Jones, and NASDAQ. See more on Facebook stock, Google stock and Tesla stock.
Top Stocks Overall Today
Find more insight into what’s going on in the stock market this week, be sure to check out the stock market predictions post and the best stocks to buy now posts. There you’ll find the key issues driving the market right now and what will influence it this week, 3 months from now and next year. Yahoo Finance has a broad array of stock market information including real time tickers and economic news.
More on Stock Market Forecasts:
What is Trump Trade? | Stock Market This Week | Stock Price Quote | Best S&P Sectors | Stock Market Forecast | Market Rally | Stock Trading Platforms | Stock Trading | Low Mortgage Rates Today | Best Dow Jones Stocks | Best Stocks to Buy | Stock Market Next Week Quarter 6 Month | Stock Market Predictions | Stock Market News | S&P 500 Forecast | Dow Jones Forecast | Will Stock Market Crash?
