Wall Street's Post-Election Upswing Fizzles, Tech and Small Caps Lead Downturn

Barry Adams
15 Nov, 2024
New York City

The post-election bump on Wall Street appears to be fizzing out as investors review the latest comments from Fed Chairman and retail sales update. 

The S&P 500 index edged down 0.1% and the Nasdaq Composite declined 0.2% after Fed Chair Jay Powell reiterated that the central bank is not in a hurry to lower rates. 

Powell's comments follow a 25 basis points rate cut last week, and investors held out for one more potential rate cut in December. 

Investors are also worried that stocks may face more headwinds in the months ahead as president-elect Donald Trump struggles to assemble a list of candidates with experience and knowledge. 

So far, cabinet appointments have raised more eyebrows in Washington, and many of the nominated candidates are likely to face serious questions from the U.S. Senate. 

On the economic front, retail sales rose 2.8% from a year ago in October, following an upwardly revised 2.0% in the previous month, the U.S. Census Bureau reported Friday. 

Retail sales rose 0.4% from the previous month, driven by an increase of 2.3% in electronics and appliance stores and 1.9% in auto dealers. 

However, book stores declined 1.1%, furniture stores fell 1.3%, and miscellaneous stores decreased 1.6%. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,903.82, the Nasdaq Composite fell 1.3% to 18,858.55, and the Russell 2000 index declined 1.4% to 2,336.94. 

The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched down to 4.43%, and 30-year Treasury bonds decreased to 4.60%.

WTI crude oil increased $0.47 to $72.08 a barrel, and natural gas prices edged down 7 cents to $2.71 a thermal unit.

Gold decreased by $2.24 to $2,564.50 an ounce, and silver increased by $0.14 to $30.53.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.64.

 

U.S. Stock Movers

Tesla declined 2% to $309.18 after the electric vehicle maker soared as much as 25% following the U.S. presidential election results. 

Chief executive Elon Musk is perceived as one of the key beneficiaries of Donald Trump's return to the White House after he poured as much as $200 million into supporting the president-elect. 

Applied Materials dropped 9% to $169.19 after the chip equipment maker reported better-than-expected quarterly results, but the company's sales outlook in the current quarter fell short of market expectations. 

Alibaba Group Holding increased 0.9% to $90.70 after the China-based e-commerce platform operator reported weaker-than-expected sales in the fiscal second quarter. 

Revenue increased 5% to 236.5 billion yuan amid ongoing weak consumer demand in the second-largest economy, but net income soared 58%, driven by a surge in its equity investment performance. 

Ulta Beauty dropped 6% to $360.0 after Berkshire Hathaway sold off its entire stake in the company, but Domino's Pizza increased 4.9% to $456.99 after the diversified conglomerate added the company to its investment portfolio.