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Mid-Week Market Minute 11.6.24

Mid-Week Market Minute 11.6.24

November 6, 2024 Market Updates

Stocks Jump; Fed Meeting Concludes Thursday

Stocks were off to the races on Wednesday following former president Donald Trump’s victory in the 2024 presidential election. In the U.S., the S&P 500 jumped more than 2.4%; meanwhile the Russell 2000 (small cap index) was higher by nearly 6% in early trading on Wednesday. At this stage, it is still too early to know how close Trump’s presidential agenda will follow his many claims as a candidate, which include promises of deep tax cuts and heavy tariffs. Outside of the presidential election, Republicans also flipped the Senate. Control of the House of Representatives remains unclear, leaving open the possibility for a red sweep, which could bring about sweeping spending changes or a revamp of tax policy.

With the Federal Reserve policy announcement slated for Thursday afternoon, interest rates are certain to draw plenty of attention from the markets over the remainder of the week. Treasury yields spiked higher following the election results, with the yield on the 10-year Treasury note trading higher by more than 15 bps to 4.47% on Wednesday. Still, the futures markets continue to price in a nearly 100% probability of a 25-basis-point rate cut at this week’s policy-setting meeting. In the near-term, we do not anticipate the election results will alter the course of the Fed and monetary policy.

Elsewhere, third-quarter earnings remain at the forefront, with nearly 20% of S&P 500 companies still slated to report results over the coming weeks. So far, earnings have been relatively strong, with S&P 500 earnings per share on pace to show an increase of more than 5% on a year-over-year basis.

Source: GSAM, CNBC, JPMorgan, FactSet

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results.