Stock Futures Rise as Dow Ends Strong November 2024

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The stock market witnessed a remarkable upward trend on Friday as it kicked off a shortened trading period, setting the stage for a strong month in equities. The Dow Jones Industrial Average demonstrated significant growth, climbing 155 points or 0.3%. Simultaneously, the S&P 500 and Nasdaq Composite also added 0.2% and 0.1% respectively. This upward momentum was partly fueled by chip stocks, which experienced a notable surge after Bloomberg reported that the Biden administration was contemplating additional barriers on the sale of semiconductor equipment to China, which were less stringent than initially anticipated. Applied Materials and Lam Research each witnessed rallies of more than 2%, while Nvidia jumped over 1%. The iShares Semiconductor ETF (SOXX) also added more than 1%. These moves came as traders looked forward to the end of a winning week and month. November trading was largely centered around the post-election rally that followed President-elect Donald Trump's victory. The Dow has now added more than 1% for the week to date, pushing its gain for November above 7%. This marks the best month for the Dow since November 2023. The S&P 500 and Nasdaq Composite have advanced 0.7% and 0.4% respectively during the week. Both are set to end 2024's penultimate month with gains of more than 5%. The small cap-focused Russell 2000 outperformed in November as investors recognized the potential benefits of Trump's proposed tax cuts. The Russell 2000 has surged more than 11% this month, with a gain of more than 1% this week.However, the stock market was closed on Thursday and will close at 1 p.m. ET on Friday in observance of the Thanksgiving holiday. There are no significant economic data releases or corporate earnings reports expected on this day, and trading is expected to be relatively light.The three major indexes opened Friday's shortened trading session in positive territory. The Dow rose about 0.3% shortly after 9:30 a.m. ET. The S&P 500 and Nasdaq Composite each inched up around 0.2%. The stock market will close at 1 p.m. ET on Friday after the Thanksgiving holiday break. Trading conditions are expected to remain light.Some stocks are making notable moves in the premarket. MicroStrategy, a bitcoin development company, saw its shares jump more than 5%, continuing the approximately 10% gain from the previous session as the price of cryptocurrency continued to climb. The stock has experienced massive gains this year, surging more than 515%. Chip equipment stocks also moved higher following a report that the Biden administration is considering more restrictions on the sales of semiconductor equipment and AI memory chips to China, which may be less strict than expected. Shares of U.S.-based companies Applied Materials, Lam Research, and KLA Corp rose between 1.3% and 2.2%, while Dutch equipment maker ASML gained 1.5% based on the Bloomberg report, which cited unnamed sources. Key retailers were marginally higher as Black Friday shopping got underway. Walmart, the country's largest retailer, rose more than 0.2%, while shares of Target and Costco advanced 0.6% and 0.3% respectively.Gold and silver prices are on track to experience their biggest monthly declines of 2024. Gold has slid more than 2% in November, marking its worst month since September 2023 when it fell more than 5%. Silver has dropped more than 4% this month, which would be its largest monthly loss since December 2023 when it tumbled more than 6%.The U.S. is considering new restrictions on the sale of AI memory chips to China, according to a Bloomberg report that cited sources familiar with the matter. However, the barriers under consideration are not as strict as some previously expected proposals. According to the report, the restrictions could be implemented as early as next week and could impact Micron Technology, along with some Taiwan-based companies and suppliers to Huawei Technologies. Micron shares were flat, while AI chipmaker Nvidia added 1.5% before the bell. Dutch semiconductor equipment maker ASML Holding added more than 1%, while U.S.-based Lam Research, KLA Corp, and Applied Materials gained at least 2% each.
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