On December 3, 2024, U.S. stock indices showed mixed performance with notable variations in trading volume, market sentiment, and high-low patterns. The Dow Jones Industrial Average declined slightly by 0.17%, reflecting cautious sentiment, while the NASDAQ Composite rose 0.40%, driven by strength in technology stocks. The S&P 500 recorded a modest gain of 0.05%, reflecting broad-based stability, and the Russell 2000, representing small-cap stocks, saw minor fluctuations as it grappled with economic sensitivity.
Volume trends were mixed: the NASDAQ experienced elevated trading activity as investors pursued growth stocks, whereas the Dow saw reduced volumes indicative of defensive positioning. Across the indices, new highs were modest, with limited stocks hitting 52-week peaks, while the count of new lows slightly increased, reflecting underlying concerns about rising interest rates and economic uncertainty.
This mixed performance underscores the divergence in market focus between technology-driven growth and broader economic caution, with small-cap stocks remaining particularly vulnerable.
My take
The markets are awaiting the release of jobs data, creating uncertainty that typically unsettles investors. However, once this data is digested and uncertainty diminishes, I anticipate a resurgence in bullish sentiment.
Stock update
(soon to be found in the stock section)
Upstart
On December 2, 2024, Upstart Holdings (UPST) experienced a steep drop, losing over $10 per share to close at $67.39, marking a decline of 14.47%. This bearish movement was accompanied by heavy trading volume of 12.58 million shares, well above its average daily volume. The sell-off reflected investor concerns over the fintech sector and Upstart’s sensitivity to rising interest rates. Analysts noted that the drop was partly triggered by broader market weakness in growth stocks and an earlier downgrade from JP Morgan. (I wrote about this yesterday and explained my take.)
On December 3, 2024, Upstart rebounded with an 8% gain, closing at $72.78, driven by renewed interest following an upgrade from Redburn Atlantic, which assigned a Buy rating and a price target of 95$ dollars to the stock. Redburn analysts highlighted Upstart’s strong position in the AI-driven lending space and its potential to capitalize on credit market efficiencies. The trading volume moderated to 9.15 million shares, signaling more balanced activity compared to the prior day. This rebound suggested improving sentiment despite ongoing volatility.