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Thursday’s 500-Point Dow Rise to a New 2023 High Caps the 8% November Rally

The benchmark’s greatest month since October 2022 was capped by robust Salesforce results and additional cooling inflation data, which caused the Dow Jones Industrial Average to spike higher on Thursday, reaching a new high for the year.

The 30-stock Dow increased by 520 points, or 1.47%, to close at 35,950.89, above the previous year’s peak reached in August. To reach 4,567.80, the S&P 500 gained 0.4%. But when investors withdrew from Big Tech firms, which have driven the November rally, the Nasdaq Composite fell by around 0.2% to 14,226.22.

The Dow ended its three-month losing run at the end of November with an 8.9% gain. November saw gains of 10.7% on the Nasdaq and 8.9% on the S&P 500. With both averages trading at 1%, they were seeing their highest monthly performance since July 2022 apart from their corresponding peaks in 2023.

“More than anything else, a lot of what we’ve seen in November is just a realisation that the economy is still performing well, that consumers are resilient, and the Fed is on pause,” as stated by Independent Advisor Alliance Chief Investment Officer Chris Zaccarelli. We believe the market will continue to go upward if those factors hold true between now and the end of the year, which is our most likely scenario.

In 2022, we devoted a great deal of our attention to considering the worst-case scenario—we hardly thought about the best-case scenario. According to Zaccarelli, 2023 is a tale of many positive developments.

Salesforce, a cloud software business, surged 9.4% on the back of better-than-expected earnings and revenue for the fiscal third quarter, leading the Dow higher on Thursday. The good news was attributed to Salesforce’s cloud data division, which witnessed a 22% rise in sales over the prior year, and its artificial intelligence offering, Einstein GPT. Leading the index higher were UnitedHealth Group, Johnson & Johnson, Merck, and Amgen, all healthcare organisations.

The personal consumption expenditures price index, which is the preferred inflation indicator of the Federal Reserve, increased 3.5% year over year in the data issued early on Thursday. This was a decrease from the 3.7% annual gain that was recorded in the previous month.

Source (CNBC)

SourceCNBC
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