The Stock Market Fluctuated Thursday. How Did U.S. Shares Fare?

 U.S. stocks fluctuated on Thursday. The S&P 500 Index declined by 0.2%, while the Nasdaq 100 surged forward by 0.6%. The Dow Jones average tumbled down by 0.6%. The Stoxx Europe 600 Index also lowered by 0.1%. However, the MSCI Asia Pacific Index changed insignificantly. The MSCI Emerging Market Index lost 0.4%.

Tech futures plummeted down recently as the investors moved on cyclical, heartened by promising vaccine news. But such rotation reversed on Wednesday as traders became wary eye due to new data that suggested a possible slowdown in economic growth. On the other hand, Treasuries climbed up.

The S&P 500 Index tumbled down from an all-time high, and the Dow Jones Industrial Average dropped below 30,000. Contrarily, the tech-heavy Nasdaq indexes climbed up. Volume lowered into the closing auction as investors headed out for the Thursday holiday. The data brought the first back-to-back increase in weekly U.S. jobless claims since July, as well as a widening trade deficit and an uptick in durable goods orders.

The Federal Reserve’s latest meeting didn’t alter views much. During the Nov. 4-5 policy meeting, the central bank contemplated providing more guidance on its bond-buying strategy. In addition, traders were assessing the Covid-19 pandemic’s effect on the economy as infection cases continue to surge, and more countries tighten restrictions.

What do the experts think?

Jeff Klingelhofer, the co-head of investments and portfolio manager at Thornburg Investment Management, stated that the market is currently caught between two powerful impulses. They include optimism for the post-pandemic world and concern because the present reality is that the coronavirus is exploding throughout the country. While stock markets could be choppy, the downside is probably limited by the vaccine.

Small caps declined, but the Russell 2000 gained 20% in November, heading for the best month in its 41-year history. Meanwhile, Gold changed insignificantly, and Bitcoin dropped down from near a record high. The 10-year Treasury yield also plunged, and the dollar lowered.

The mediocre economic data dimmed positive Covid-19 vaccine news. Lockdowns to fight surging Covid-19 cases threaten to hinder the global economic recovery. An MSCI gauge of global shares struggled on Wednesday after rallying by 13% in November, but it’s still set for the best month since 1988.

Mike Loewengart, the managing director of investment strategy at E*Trade Financial, stated that they remain on fragile footing heading into the winter while infection cases are climbing globally. Since the markets are forward-looking, they will likely take this data in stride.

In Europe, the Stoxx Europe 600 Index tumbled down, as cyclicals such as energy and mining firms dropped, offsetting advances in defensives including utility shares.