Gains by Nvidia and Microsoft boost US markets

Stocks jumped Monday to start a holiday shortened week, boosted by strong tech gains led by Microsoft and Nvidia.

The Dow Jones Industrial Average gained 203.76 points, or 0.58 per cent, to close at 35,151.04 . The S&P 500 added 0.74 per cent and ended at 4,547.38, while the Nasdaq Composite climbed 1.13 per cent to close at 14,284.53. It was the fifth consecutive day of gains for the S&P 500 and the tech-heavy Nasdaq.

Microsoft shares were up 2 per cent, reaching a new 52-week high, after CEO Satya Nadella said former OpenAI chief Sam Altman will be joining the tech giant to lead a new AI research team. In response to the firing of Altman, nearly all of OpenAI's employees, around 700 out of approximately 770, have signed a letter threatening to quit and join him at Microsoft.

Chipmaker Nvidia also added 2.3 per cent, closing at an all-time high for the stock ahead of its earnings report Tuesday afternoon.

The tech and communication services sectors were the biggest gainers in the S&P 500, up 1.5 per cent and 1 per cent, respectively. Palo Alto Networks jumped 5.2 per cent, while Intel climbed 2 per cent. Meanwhile, Paramount rose 5.6 per cent, followed by Netflix, which gained 1.8 per cent.

Utilities and Consumer Staples were the only sectors that closed in the red.

US markets will be closed Thursday due to the Thanksgiving holiday. Friday will also be a shortened trading day. Trading around the Thanksgiving holiday has been choppy in recent years, but November is still the best-performing month for the S&P 500, according to the Stock Traders’ Almanac.

Market bulls remain enthusiastic into year-end, particularly after cooler-than-expected US inflation data released last week calmed investors’ nerves about stubbornly high prices and provided a hopeful indication that the Federal Reserve could stop raising interest rates. Yields also continued their fall on Monday following a strong auction on 20-year Treasury notes.

Wall Street will also keep an eye on the latest Fed minutes, which are scheduled to be released Tuesday.

In commodity-related news, gas prices in the US are on a nine-week downward trend, and Thanksgiving 2023 may see the lowest gas prices since 2020, potentially dropping to $3.25 per gallon, attributed to softening demand and declining crude oil prices. The outcome of the upcoming OPEC meeting may influence future gas prices, with speculation about potential production cuts.

Turning to the Australian landscape, the primary focus is on the Reserve Bank of Australia (RBA), with Governor Michele Bullock speaking at the ASIC Annual Forum in Melbourne and Carl Schwartz addressing an event in Sydney. Furthermore, the board meeting minutes are set to be released at 11:30 am.

Futures

The SPI futures are pointing to a 0.3 per cent gain.

Currency

One Australian dollar at 8:25 AM was buying 65.61 US cents.

Commodities

Gold fell 0.25 per cent. Silver lost 1.62 per cent. Copper gained 1.72 per cent. Oil jumped 2.25 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.11 per cent, Frankfurt also fell 0.11 per cent, and Paris closed 0.18 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei lost 0.59 per cent, Hong Kong’s Hang Seng gained 1.86 per cent while China’s Shanghai Composite closed 0.46 per cent higher.

The Australian share market closed 0.13 per cent higher at 7058

Ex-dividends
Amcor PLC (ASX:AMC) is paying 19.73 cents unfranked
Elders (ASX:ELD) is paying 23 cents 30 per cent franked
Kelly Partners Group (ASX:KPG) is paying 0.44 cents fully franked

Dividends payable
Adacel Technologies (ASX:ADA)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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