Active November in the Markets after Election Results
The November markets were active - led by election speculation trades and short-term positioning by investors.
In the U.S. stock market, we saw major gains, with indices reaching record highs - the S&P 500 was driven by semiconductor shares. This boost occurred mainly due to the current Biden administration's milder-than-expected restrictions on sales to China. This was beneficial for many companies but a big player helped was Nvidia(NVDA).
The Dow Jones Industrial Average and the S&P 500 both saw their best month of trading for the year. The Bitcoin rally continues to gain steam, jumping close to the highly anticipated $100,000 price point. Will this move continue, when will major profit-taking occur by investors and will that potentially drive prices lower to more sustainable levels? All questions to be answered in the new year.
European markets on the other hand had mixed numbers. The Asian markets also had a variety of results from local and global economic data and reports. With the US's newly elected President taking office in January, we'll see how the potential of tariffs being implemented on China will affect our country's prices on goods and trading relationships.
On the futures and commodities side, November's trading was consistent. Trader's saw good activity and opportunities in the softs. Coffee and cocoa had big gains due to production issues in West Africa and concerns about what the Brazilian crop will look like next year. Natural gas prices moved higher, which typically happens this time of year and is a seasonal trade to monitor. Precious metals lost strength this month and investors appeared to gain confidence in the markets and consumer spending, moving away from safehaven trades.
November 2024 was one for the books. December should be another busy trading month. There are plenty of storylines to follow as 2024 comes to an end. Policy changes to come in the government, constant changes in commodity fundamentals and a variety of macro-factors we are still trying to manage should give traders plenty of opportunities to capitalize leading into the new year.
Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.
On the date of publication, Peter Mooses had a position in: NVDA . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.