Dow, S&P 500, Nasdaq gain as tech stocks lead, with Fed’s Powell on deck

Over the past few years, a stronger-than-expected US economy has continuously surprised Wall Street and its projections.

While we’ve become somewhat used to them now, the recent underestimations are a reversal of what was seen prior to the pandemic when US economic forecasts were often too lofty, RBC Capital Markets head of US equity strategy Lori Calvasina told Yahoo Finance.

And now, heading into 2025, strategists like Calvasina are leaning into the post-pandemic trend and betting consensus economic forecasts will once again be surprised to the upside by the US economy.

“Given that history recently of underestimating [US economic growth] and the fact that GDP forecasts for next year are creeping up very, very, very slowly, I’m making a bet on the 2% to 3% [growth] instead of the 1% to 2%,” said Calvasina, who sees the S&P 500 ending next year at 6,600.

On Tuesday, Wells Fargo’s Christopher Harvey issued the most bullish target on Wall Street at 7,007 while highlighting a “cyclical opportunity catalyzed by upward GDP revisions.”

If 2024’s market driving abbreviation was AI, 2025’s is set to be GDP.

Read more here.

President-elect Donald Trump officially announced the nomination of Paul Atkins to be the next Chairman of the Securities and Exchange Commission on Wednesday.

Atkins currently the CEO at Patomak Global Partners, served as SEC Chair under the George W. Bush administration from 2002 to 2008. Atkins, unlike his potential predecesor Gary Gensler who is set to leave office in January 2025, is seen as a pro-cryptocurrency official. The former Securities and Exchange Commission commissioner currently serves on the advisory board for digital securities issuance platform Securitize.

“He’s certainly a person that is known for streamlining regulation and being very pro digital assets, and very knowledgeable in the industry,” Carlos Domingo, the founder and CEO of Securitize, told Yahoo Finance on Wednesday.

Bitcoin (BTC-USD) moved slightly higher on the news, and was trading just of $96,000 per coin in afternoon trade.

The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) touched intraday record highs on Wednesday as markets edged higher, buoyed by tech stocks.

The S&P 500 Tech sector (XLK) outperformed, jumping about 1.3%.

The Dow Jones Industrial Average (^DJI) also climbed after a strong quarterly report from software maker Salesforce (CRM).

UnitedHealth Group (UNH) released a statement Wednesday following the fatal shooting in Manhattan of Brian Thompson, the CEO of UnitedHealthcare.

“We are deeply saddened and shocked at the passing of our dear friend and colleague Brian Thompson,” read the company statement.

“Brian was a highly respected colleague and friend to all who worked with him. We are working closely with the New York Police Department and ask for your patience and understanding during this difficult time. Our hearts go out to Brian’s family and all who were close to him.”

Thompson was shot outside the Hilton hotel in Midtown Manhattan, where the company was holding its investor day.

UnitedHealth halted the event this morning following the shooting.

President-elect Donald Trump has asked Peter Navarro to be senior counselor for Trade and Manufacturing.

Navarro served under Trump’s first term as White House trade adviser.

“I am pleased to announce that Peter Navarro, a man who was treated horribly by the Deep State, or whatever else you would like to call it, will serve as my Senior Counselor for Trade and Manufacturing,” wrote Trump on social media platform Truth Social on Wednesday.

“During my First Term, few were more effective or tenacious than Peter in enforcing my two sacred rules, Buy American, Hire American,” wrote Trump.

Amazon (AMZN) hit an all-time high on Wednesday amid the company’s AWS re:Invent 2024 cloud conference. Shares of the e-commerce and cloud giant rose more than 2% in early trading.

On Wednesday, numerous Wall Street analysts reaffirmed their bullish Buy ratings on the stock, citing the company’s artificial intelligence capabilities.

The stock has 77 Buy ratings, 5 Holds, and zero Sells.

Amazon shares are up 43% year to date.

Foot Locker (FL) shares tumbled 12% in early trading after the footwear retailer cut its full-year guidance while missing third quarter estimates, citing weak consumer demand.

“Consumer spending trends softened following the peak Back-to-School period in August, and the promotional environment was more elevated than anticipated,” the company said in its quarterly release.

The stock is down more than 30% year to date.

US stocks edged higher on Wednesday, as tech rose, led by shares of Salesforce (CRM).

The Dow Jones Industrial Average (^DJI) climbed 0.4%, or around 200 points, while the S&P 500 (^GSPC) added 0.3% on the heels of an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained 0.7%.

Salesforce (CRM) stock climbed around 8% in early trading after the software maker’s quarterly revenue beat boosted hopes for its AI products.

Investors await Fed Chair Jerome Powell’s appearance in New York on Wednesday afternoon. Investors will be looking for clues from his commentary about the direction of Fed policymakers’ next interest rate move. The last Fed rate policy meeting of the year is slated for Dec. 18.

Economic data: MBA Mortgage Applications (week ended Nov. 29); ADP Private Payrolls (November); S&P Global US Services PMI & US Composite PMI (November final); ISM Services index (November); ISM Services prices paid (November); Factory orders & Durable goods orders (October final)

Earnings: American Eagle Outfitters (AEO), Campbell’s (CPB), ChargePoint (CHPT), Chewy (CHWY), Cracker Barrel (CBRL), Dollar Tree (DLTR), Five Below (FIVE), Foot Locker (FL), Hormel Foods (HRL), RBC (RBC), Victoria’s Secret (VSCO)

Here are some of the biggest stories you may have missed overnight and early this morning:

Why Wall Street is betting on a strong economy in 2025

GM to take over $5B hit on China operations

Wells Fargo makes the most bullish 2025 S&P forecast yet

EU probes Nvidia hardware bundling amid Run:ai deal scrutiny

Marvell stock surges amid AI boost to Q4 revenue forecast

Stellantis chairman to pick Apple CFO Maestri as carmaker’s new CEO

Small caps should shine until the dollar ‘wrecking ball’ hits

Wells Fargo to sell San Francisco headquarters, WSJ reports