A trifecta of record closes, fueled by soaring tech stocks, and a market-friendly tone from Fed Chair Jerome Powell.

The Dow Jones (+0.7%) smashed through the 45,000 milestone for the first time. The rally came on the back of booming tech earnings, led by Salesforce and Marvell Technology, and a confidence boost from Federal Reserve Chair Jerome Powell’s comments.

“Be a little more cautious” with rate cuts, said Powell, highlighting a stronger-than-expected economy and progress on inflation. This gave investors signals that the Fed could afford to slow its pace of rate cuts. The Beige Book echoed this optimism, reporting slight economic growth across most regions since October.

⚡ Closing Bell:

• Dow Jones: ⬆️ +0.7% to 45,014 (historic high)

• S&P 500: ⬆️ +0.6% to 6,086.50 (new record) – defied the odds, rising despite having more decliners than gainers—a rare feat and a first for 2024.

• Nasdaq: ⬆️ +1.3% to 19,735.10 (another record)

• Russell 2000: ⬇️ -0.6%

Sector Scorecard:
→ Tech: The undeniable winner ✅ (again), dominating the leaderboard with strong earnings and AI-driven optimism.
→ Energy: ❌ Down 2.5%, hit by falling oil prices.

• S&P Technology Index (S5INFT): ⬆️ +1.77%, reaching an all-time high.

• Communication Services (S5TELS): ⬆️ +0.61%.

• Consumer Discretionary (S5COND): ⬆️ +1.20%.

Spotlight ✅ :

• Marvell Technology (MRVL): ⬆️ +23.19%, topping the Nasdaq with a bullish Q4 outlook.

• Salesforce (CRM): ⬆️ +10.99% after delivering strong third-quarter results, fueled by subscription sales growth.

• UnitedHealth (UNH): ⬆️ +0.92%, despite tragic news of a senior executive’s passing

• Amazon (AMZN): ⬆️ +2.19%, climbing after a buzzworthy AI showcase impressed analysts.

• Chipotle (CMG): ⬆️ +4.85%, fueled by a confirmed 2% price hike.

• Nvidia (NVDA): ⬆️ +3.5%, riding the semiconductor wave.

• SOX Semiconductor Index: ⬆️ +1.7%.

At the Bottom ❌:

• Texas Pacific Land (TPL): ⬇️ -12%, the day’s steepest S&P 500 decline, weighed down by underwhelming guidance.

• Foot Locker (FL): ⬇️ -8.9%, after lowering its full-year earnings outlook amid soft consumer spending.

• JPMorgan (JPM): ⬇️ -0.57%, posting its sixth straight losing session, the longest streak since October 2023.

• GM (GM): ⬇️ -0.56%, slipping after announcing a $5 billion charge related to its China joint venture.

Economic Data
Treasury yields edged lower today as Fed Chair Powell’s cautious optimism, softer economic signals, and global uncertainty pushed investors toward the safety of bonds.

• 10-year Treasury yield: ⬇️ -3.3 bps to 4.188%

• 30-year Treasury yield: ⬇️ -3.3 bps to 4.19%

• 2-year Treasury yield: ⬇️ -4.3 bps to 4.13%

❗Investors are now eagerly awaiting Friday’s jobs report, which could solidify expectations of a December rate cut. For now, confidence is running high.

#TRUTH:
❗ “Fortune favors the bold.”~ Latin Proverb

Fast Snail 🐌💨:

The US services sector hit a bit of a slowdown in November, but don’t count it out just yet. After a red-hot October, the ISM nonmanufacturing PMI cooled to 52.1, down from 56.0, the highest since August 2022. Economists had been hoping for a gentler decline to 55.5, but here we are—still above the magic 50 mark that signals growth.

This sector, which fuels over two-thirds of the US economy, is still pulling its weight. Consumer spending remained strong in October, construction spending picked up, and the Atlanta Fed is predicting 3.2% GDP growth for Q4. Not bad, considering Q3 clocked in at 2.8%.

Here’s the snag: ❗inflation isn’t budging. The prices paid index stayed high at 58.2, with costs rising for essentials like transportation and financial services. And while new orders dropped to 53.7 from 57.4, they’re still in growth mode.

→ Employment in the sector? It slipped a little to 51.5, but nothing to panic about.

On the jobs front, November is looking a lot brighter. Nonfarm payrolls are expected to rebound with a 200,000-job gain, a big leap from October’s hurricane-and-strike-impacted 12,000. Rebuilding in storm-hit areas and the end of strikes at Boeing and other firms are putting the labor market back on track.

In short: The services sector might not be sprinting anymore, but it’s still holding its own. Inflation remains the wildcard, though—it’s the main reason the Fed could pump the brakes on rate cuts in 2025. For now, the economy’s chugging along, even if it feels like we’re moving at the pace of a very determined snail.

On a Diet 🥗:

Good news for anyone hunting for a home—or just trying to make their current one cheaper to own. Mortgage rates took another little tumble today, continuing their downward glide. The 30-year fixed rate now sits at 6.31%, and the 15-year fixed? It’s clocking in at 5.65%, according to Zillow.

Why the dip? Two big reasons:

1. The 10-year Treasury yield—mortgage rates’ BFF—has been sliding since mid-November.

2. Everyone’s betting the Fed will cut rates by 25 basis points on Dec. 18.
   (Pro tip: Mortgage rates often drop before the Fed makes its move, not after.)

Wednesday’s Mortgage Highlights:

• 30-Year Fixed: 6.31%

• 15-Year Fixed: 5.65%

• 20-Year Fixed: 6.05%

• 5/1 ARM: 6.55%

• 30-Year VA: 5.68%

If you’re looking to refinance, here’s what you’re working with:

• 30-Year Fixed Refi: 6.35%

• 15-Year Fixed Refi: 5.70%

Sure, fixed rates give you peace of mind—but don’t sleep on adjustable-rate mortgages (ARMs) if you’re the adventurous type. Their intro rates are often lower, which could save you some cash upfront (just don’t stick around after that intro period unless you like surprises).

So, What’s the Move?
If you’ve been waiting for the right moment to jump into the housing market or refinance, this could be your window. Rates are still in “let’s chill” mode.

Keep an eye on the Fed’s decision later this month—because that’s when things could get really interesting.

Crypto Cheerleader ✨:

President-elect Donald Trump has nominated Paul Atkins, a lawyer with a crypto-friendly track record, as the next chair of the U.S. Securities and Exchange Commission (SEC). The announcement came, naturally, via Truth Social.

Who’s Paul Atkins?
Atkins is no rookie. He’s the CEO of Patomak Global Partners, a financial consulting firm, and a former SEC commissioner during George W. Bush’s presidency, and
co-chairs the Token Alliance. He’s been helping crypto platforms navigate the tricky terrain of compliance.

Trump praised Atkins as someone who understands that “digital assets & other innovations are crucial to Making America Greater than Ever Before.”

What’s Next for Crypto?
With Atkins at the helm, the industry could see a lighter regulatory touch—or at least a more collaborative one. For investors and crypto enthusiasts, this could mean fewer roadblocks and more innovation.

Markets seem to like what they’re hearing. Truth Social parent Trump Media & Technology Group (DJT) saw a 4.72% boost, closing at $35.22.

The crypto world just got a big ally in Washington. It’s going to be an interesting ride.

And The Ripple Effect 🌀:

Crypto markets responded positively to the news:

• Bitcoin (BTC): ⬆️ +3% to $98,892(+3.02%)

• Ethereum (ETH): ⬆️ +7.4% to $3,881 (+5.63%)

• Dogecoin (DOGE): ⬆️ $0.43 (+3.08%)

$5B Blow 💸:

General Motors 🚘 is bracing for a massive $5 billion hit in its fourth quarter, citing struggles with its Chinese joint venture with state-owned SAIC Motor.

In a regulatory filing Wednesday, GM announced plans to write down the venture’s value by $2.6 to $2.9 billion and spend another $2.7 billion on restructuring, including plant closures. The news sent GM shares down 0.56% shortly after the market opened.

GM’s business in China, once a stronghold, has been steadily declining since 2018, officially dipping into the red this year. Despite the losses, the company’s CEO has doubled down, stating that GM has no plans to exit China.

Tough competition and changing market dynamics have left the automaker on the defensive, with this quarter shaping up as a costly one for the Detroit giant.

Magic🪄:

SpaceX is breaking records—again. Elon Musk’s rocket-launching powerhouse is reportedly gearing up for an internal share sale that could value the company at a jaw-dropping $350 billion, just a month after discussions of a tender offer at $255 billion. That’s a $100 billion jump in just four weeks.

The valuation leap puts SpaceX in the stratosphere as the world’s most valuable startup, overtaking TikTok owner Bytedance, which sits at $300 billion, according to The Wall Street Journal.

A string of headline-making events seems to be propelling SpaceX’s meteoric rise. In mid-October, the company nailed a groundbreaking move by “catching” its massive Super Heavy rocket booster with giant mechanical “chopsticks,” potentially rewriting the economics of space flight. Add to that the ripple effects of Donald Trump’s election win, where Musk played a key backing role, and it’s been a stellar month for the company.

It’s not just SpaceX that’s climbing higher. Musk’s other ventures are riding the wave, too. Tesla shares are up 40%, and X (formerly Twitter) is recapturing some of its lost value.

Unicorns—private startups valued at over $1 billion—are rare enough, but adding $100 billion to your valuation in a month? That’s a move only Musk could pull off.

The Dollar 💵:

Commodities Check: ✔️

• Gold: ⬆️ +0.2% to $2,674.20/oz

• WTI Crude: ⬇️ -1.62% to $68.81/barrel

• Brent Crude: ⬇️ -1.48% to $72.53/barrel

• Silver: ⬆️ +1.1% to $31.84 per ounce.

Get a Serious Trading Platform and a Sweet Bonus.
» Find out more

The stinger

Disclaimer

This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills.