US stock market forecast: Will S&P 500, Dow Jones, Nasdaq continue positive trend?

US stock market indexes -- S&P 500, Dow Jones Industrial Average, and Nasdaq composite -- are likely to open in positive note on Monday. This comes after investors took assurance from data pointing to robust economic activity in the US. However, geopolitics will remain a key focused area in the final week of November as investors will closely follow the conflict between Ukraine and Russia, after Moscow lowered its threshold for a nuclear retaliation.

Meanwhile, expectations on the Federal Reserve's policy move in December have recently swayed between a pause and a cut, as investors weighed the likely impact of Trump's plans on price pressures.

There is a 59.6 per cent probability the central bank will lower borrowing costs by 25 basis points, as per the CME Group's FedWatch Tool.


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"I’ve been looking for this leadership change to go from technology to everything else. I think we may be in the midst of that shift. Small caps are acting much better, values are acting better," said Mark Hackett, Chief of Investment Research at Nationwide.

A measure of business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump's administration next year.

Wall Street closed higher on Friday, with all three major indexes posting weekly gains. On Friday, S&P 500 rose 20.63 points, or 0.3 per cent, to 5,969.34. Dow Jones Industrial Average rose 426.16 points, or 1 per cent, to 44,296.51. Nasdaq composite rose 31.23 points, or 0.2 per cent, to 19,003.65.

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The domestically focused small-cap Russell 2000 index rose and outperformed large-cap indexes. The index hit its highest in more than a week and was set for weekly advances. Russell 2000 index of smaller companies rose 42.65 points, or 1.8 per cent, to 2,406.67.

FAQs

Q1. Which are main indexes of US stock market?
A1. US stock market indexes are S&P 500, Dow Jones Industrial Average, and Nasdaq composite.

Q2. When is Federal Reserve's policy expected?
A2. Federal Reserve's policy move in December.