ULTA - US Stocks Set For Lackluster Start Following November's Buoyancy; Fed Chair Powell's Speeches Take The Spotlight | Benzinga
U.S. stocks are priming for a cautious start in the first trading session of December following Thursday’s mixed close. December, typically a seasonally strong month, could be cautiously approached by traders as the major averages have all advanced strongly this year despite the economic uncertainties. That said, if incoming evidence continues to support expectations of a soft landing scenario accompanied by a cool-off in inflation, then cash waiting on the sidelines will likely be into stocks and other risky bets, increasing the momentum of the typical “Santa Claus” rally.
Traders could closely watch Federal Reserve Chair Jerome Powell’s two public appearances as they seek clarity on the rate outlook.
Cues From Thursday's Trading:
The major indices closed mixed on Thursday, as profit-taking in some high-profile tech names weighed down on the tech-heavy Nasdaq Composite, while the Dow Industrials advanced solidly. The strong gain of the 30-stock blue-chip average was fueled by the 9%+ rally in Salesforce, Inc. (NYSE:CRM) shares following its quarterly results. The breadth markedly favored the advancers, with 24 of the index components closing in the green.
A tamer reading for the Fed’s preferred inflation gauge also kept the risk appetite alive.
The broader S&P 500 Index, which traded below the unchanged line for the bulk of the session, recovered in a last-hour push upward.
Notwithstanding the mixed performance on Thursday, the three averages had a buoyant November. The S&P 500 and the Nasdaq Composite had their best monthly performances since July 2022. The Dow closed snapped three straight months of losses and settled at the highest level since Jan. 13, 2022.
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