As December begins, the financial world is abuzz with new developments that could shape the Stock Market. From record-breaking highs on Wall Street to leadership shakeups at major corporations, here’s what you need to know before trading begins today.
1. S&P 500 and Nasdaq Set New Highs
The first trading day of December proved to be a milestone, with the S&P 500 and Nasdaq Composite both closing at fresh records. Meanwhile, the Dow Jones Industrial Average lagged, dipping slightly as traders assessed the market’s trajectory.
Investors will be watching closely as the U.S. job openings report for October is released today, which could serve as a key market driver. The report precedes Friday’s anticipated nonfarm payroll data for November, which is expected to offer further insight into the labor market’s health. In addition to economic data, remarks from Federal Reserve officials are expected to shed light on the central bank’s plans ahead of its December 17–18 meeting.
2. Federal Reserve’s December Decision Looms
Federal Reserve Governor Christopher Waller made headlines Monday by expressing his support for a potential interest rate cut at this month’s meeting. “I lean toward supporting a cut,” Waller said, while noting that stronger-than-expected inflation data could sway his stance.
Markets widely anticipate a quarter-point cut to the Fed’s benchmark rate. This move would mark the third consecutive reduction, following a 25-basis-point cut in November and a 50-basis-point reduction in September. Investors are keenly attuned to how these adjustments might impact inflation and the broader economy as 2024 draws to a close.
3. Elon Musk’s Legal Battle Over Record Pay Package
Elon Musk suffered another setback in his quest to reinstate his 2018 Tesla pay package—a deal once valued at a jaw-dropping $56 billion. A Delaware judge upheld a prior ruling invalidating the package, citing improper approval processes.
Musk, never one to back down, called the decision “absolute corruption” and vowed to appeal. The controversial pay plan, the largest ever granted to a U.S. public company executive, has been the subject of intense scrutiny since its inception.
4. Intel’s CEO Steps Down Amid Struggles
Intel is making headlines for all the wrong reasons. On Monday, the company announced the resignation of CEO Pat Gelsinger as it grapples with a sharp decline in market share. Gelsinger’s departure comes amid Intel’s ongoing struggle to compete with Nvidia, whose dominance in the semiconductor industry has left Intel trailing behind.
Intel’s stock performance has been equally troubling, with shares plunging over 50% this year. For now, CFO David Zinsner and Intel Products CEO MJ Holthaus will serve as interim co-CEOs as the company searches for a permanent leader.
5. Dollar Store Chains Face Challenges
You’d think discount retailers like Dollar Tree and Dollar General would be thriving in today’s high-inflation environment. Instead, both chains are floundering. Shares of each have tumbled over 40% this year, and both companies have lowered their sales outlooks.
Why the struggles? Several factors are at play. Lower-income consumers—hit hardest by inflation—are cutting back on spending. Additionally, the chains have lagged in developing robust e-commerce platforms, and understaffing has negatively impacted the in-store experience.
What’s Next for Investors?
As the market continues to evolve, today’s job openings report and upcoming Fed decisions will play critical roles in shaping the financial landscape. Stay tuned for more updates, and keep an eye on these trends as December unfolds.
Also read: Meet the Monster Stock That Continues to Crush the Market: GE Vernova