Several companies reported sharp movements. Gap Inc. surged 9.5% after raising its annual sales forecast, signaling a strong start to the holiday shopping season. Elastic rose 15% on better-than-expected quarterly earnings, while Reddit dropped 6% following reports of financial maneuvering by its parent company. Super Micro Computer extended its rally, up 11% amid confidence in its Nasdaq compliance plans.
Intuit fell 4.7% despite a strong quarterly performance, as it guided for a revenue decline in its consumer segment. Honeywell gained 1% after announcing a $1.33 billion divestiture of its personal protective equipment business. Meanwhile, MicroStrategy rebounded 10% as Bitcoin approached $100,000, spurring gains for the cryptocurrency-focused company.
Broader Market Sentiment
The Fed’s policy outlook remained a focal point, with markets pricing in a 59.6% chance of a 25-basis-point rate cut in December. Analysts highlighted the potential impact of Trump’s fiscal and trade policies on inflation, which could temper the Federal Reserve’s pace of monetary easing. Additionally, geopolitical risks, including missile exchanges between Ukraine and Russia, kept investors vigilant.
Market Forecast
The S&P 500 appears poised for further upside, supported by improving economic indicators and positive sentiment surrounding deregulation. However, technology and communication services stocks may face headwinds due to regulatory scrutiny and valuation concerns. Traders should monitor Fed commentary and geopolitical developments for potential volatility in the coming weeks. A continued rotation into value and industrial sectors could define near-term opportunities.