US Stocks Advance, Microsoft's Record Highs, Israel And Hamas Sign Temporary Truce: This Week In The Markets

Wall Street marked its fourth consecutive week in the green, despite reduced investor activity during the Thanksgiving holiday week.

The major U.S. stock indices are steadily approaching their all-time highs: The S&P 500 index is now just 6% away from its January 2022 peak of 4,818, while the Nasdaq is approximately 5% below its November 2021 high of 16,764.

Microsoft surges to record highs, on track for the best year since 1999: Microsoft Corp. MSFT reached a historic high of $377 per share during  Wednesday's trading session. This remarkable performance adds to the tech giant’s outstanding year, with the stock boasting a year-to-date gain of 57%, reminiscent of its glory days in 2009 and even reaching returns not seen since 1999.

Chart Of The Week

Sam Altman returns to Open AI: Sam Altman is set to resume his role as chief executive officer of OpenAI shortly after being dismissed just a week earlier. Benzinga reconstructed a timeline recounting the events of the OpenAI saga.

November's Fed minutes fail to make waves: There were no major surprises in the latest Federal Reserve minutes, with policymakers signaling that interest rates are already restrictive. The Fed indicated the need for further evidence of a decline in inflation. Markets have completely ruled out the possibility of a rate hike in December and are anticipating four rate cuts in 2024.

Economic data depict a mixed scenario: Overall, U.S. private sector activity remained unchanged in November. A sharper-than-expected decline in manufacturing was counterbalanced by a more positive surge in services, surpassing expectations, as indicated by the S&P Global PMI. On the downside, employment is beginning to contract, but on the upside, price pressures are easing, aligning with a return to the Federal Reserve’s 2% target.

Analysts raise projections following positive Nvidia's earnings: Nvidia Corp. NVDA delivered third-quarter results that exceeded expectations and provided robust revenue guidance for the fourth quarter on Tuesday. In response, several analysts on Wall Street raised their price targets for the semiconductor giant.

Israel-Hamas ceasefire begins: A temporary ceasefire in Gaza between Israel and Hamas was put into effect on Friday following extensive negotiations. The truce includes exchanging 50 hostages held by Hamas for 150 Palestinian prisoners in Israeli jails.

Javier Milei wins Argentine elections: A staunch advocate of libertarianism and a devoted Trump supporter, Javier Milei secured victory in Argentina's presidential race, defeating the Peronist opposition at a time when the country is battling inflation exceeding 140%. The stock market witnessed an impressive surge in the day following Milei’s win. The new president has pledged to enact ambitious and radical policies such as dropping the peso in favor of the dollar.

What To Watch In The Week Ahead: All eyes are on Thursday’s release of the October Personal Consumption Expenditure price index, the Fed’s favored inflation gauge. Economists expect a drop from 3.4% to 3.1% in the annual rate. Thursday also brings personal income and spending data. On Friday, watch for the ISM manufacturing PMI for November. Fed chair Jerome Powell will provide remarks at Spelman College in Atlanta on Friday.

Upcoming Earnings To Watch: The week begins with ZScaler Inc. ZS on Monday. Tuesday’s spotlight will be on Intuit Inc. INTU, Workday Inc. WDAY, CrowdStrike Holdings Inc. CRWD, Splunk Inc. SPLK, and Hewlett Packard Enterprise Co. HPE. Wednesday brings earnings from software giant Salesforce Inc. CRM, Synopsys Inc. SNPS, Snowflake Inc. SNOW and Dollar Tree Inc. DLTR. Thursday will feature Marvell Technology MRVL, Kroger Co. KR and Ulta Beauty Inc. ULTA.

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