Bull market gains serious charge
From YouTube
US stocks ended their shortened week in brand-new record all-time high territory after the S&P 500 gained 0.6% on Friday. But zooming out, the picture is far brighter. The S&P 500 posted its best monthly gain in a year, after rising 3.4%, supported by Tesla shares charging up 33%, $Tesla (TSLA.US)$ while Garmin gained 28%, $Garmin (GRMN.US)$ and Taser business Axon rose 45%. Meanwhile, Australia’s ASX 200 recorded its best gain in 12 months, rising 3.9%. Sigma Healthcare was the standout $Sigma Healthcare Ltd (SIG.AU)$ up 47% with Pro Medicus $Pro Medicus Ltd (PME.AU)$ following, rising 29%, and Web Travel gained 28%.
The one big takeaway from November for December is that tech stocks have continued to lead the market higher, as they have all year. And the thinking is, the tech bull market appears to have been waved through and gained serious bullish charge. Why? Well, bond yields continued to sag, and the US dollar carved out its biggest weekly drop in three months, as fears about Donald Trump’s extreme trade policies seem to have dissipated. The market’s fear gauge has also fallen to a five-month low.
This doesn’t mean November’s gains, where Tesla rose 33% and Sigma gained 47%, for example, and the broad markets rose over 3%, will be replicated. And this doesn’t mean we won’t experience a pullback. But if we did see a pullback—which you could maybe expect in December, as it’s traditionally not as strong a month as November—then if we did see a pull back - you will probably see investors buy into stocks seeing a drop as an opportunity to buy.
As for stocks and sectors to watch?
Firstly, consider the broad Aussie market, hit a brand-new record high on the first day of December after rising 0.3% to 8,464 points. Keep an eye on Australia's biggest ETF, the Vanguard Australian shares ETF $Vanguard Australian Shares ETF (VAS.AU)$
Shares in gold and copper are expected to do well, as their commodity prices are up, with gold up 0.20% to US$2,643.
Focus will be on Wisetech $WiseTech Global Ltd (WTC.AU)$ as the founder sold at 8.2% stake. Star $The Star Entertainment Group Ltd (SGR.AU)$ will be on watch with the new CEO to start today. And keep an eye on Qantas $Qantas Airways Ltd (QAN.AU)$ that announced it will be flying its longest Airbus that can travel for 11 hours non-stop and burns 30% less fuel, the A321- XLR, which it will in April 2025.
Broadly focus will be on stocks that are key beneficiaries of Black Friday and Cyber Monday sales such as Garmin $Garmin (GRMN.US)$ and JB Hi Fi $JB Hi Fi Ltd (JBH.AU)$ with their shares up 70% each this year and they could see more share price momentum, as festive season spending is expected to hit almost US$1 trillion in the US.
Key events to watch this week
Key events includes the US monthly payrolls release and Fed Chair appearances, as well as Australian third-quarter economic data. If the data is hotter than expected, or if Fed Chair Jay Powell hints rates may need to stay higher for longer, then stocks could be a little volatile and maybe pull back. But you might expect banks to continue to push up if data shows strength. We will also keep an eye on what happens in Japan with bets that their central bank could deliver another rate hike at their final meeting of the year. That could unnerve markets.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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