US Market Ends Higher on Tech Gains and Economic Boost, Mixed After-Hours Trends

 

Three major indexes in the US market surged to record highs yesterday (December 4), propelled by a strong rally in technology stocks and positive signals from Federal Reserve Chair Powell's speech. The Dow Jones climbed 0.69% to 45,014.04. The S&P 500 rose 0.61% to 6,086.49. The Nasdaq jumped up 1.30% to 19,735.12.

 

Tech stocks pulled indexes up led by the cloud company Salesforce (NYSE: CRM) which soared 10.99% and hit an all-time high following better-than-expected earnings and an upgraded revenue outlook. Chip stocks also rallied led by Marvell Technology (NASDAQ: MRVL) which surged 23.19% after its earnings forecast exceeded expectations. Consequentially, the S&P 500 technology index closed at a record high.

 

However, after-hours trading showed a varied trend. On the one hand, SentinelOne (NYSE: S) plunged 14.57% due to disappointing earnings and guidance. Synopsys (NASDAQ: SNPS) fell 7.50% on lower-than-expected Q1 forecasts. PVH Corp (NYSE: PVH) and American Eagle Outfitters (NYSE: AEO) struggled, dropping 6.70% and 12.61%, respectively, due to underwhelming guidance. On the other hand, Verint Systems (NASDAQ: VRNT) surged 22.26% on robust AI-driven revenue growth. Five Below (NASDAQ: FIVE) advanced 14.56% after satisfactory earnings estimates and a CEO appointment.

 

In macro terms, Market-wide gains were fostered by modest economic expansion Powell’s comments and a Fed's report indicated. This expansion made the sentiment optimistic and the Fed hesitant about a rate cut in December. Investors still expected a third rate cut at the Fed's meeting on Dec. 17-18. They also remain focused on indicators used by the Fed to gauge the rate: the US jobs data on Dec. 6 and the unemployed data on Dec. 5.

 

Yesterday (Dec. 4), the US private payroll data displayed a minor increase. But, the survey showed a decelerating growth in service activities. Based on these indicators, the CFRA strategist SAM Stovall predicted that the Fed would cut the rate in December.