Building Gains On Lost Ground

Global Market Watch

Historically, the stock market has shown positive performance following Thanksgiving. In the last three decades, December has typically yielded an average return of approximately 1 per cent in US equities, and the market has experienced post-holiday gains in about 75 per cent of cases. 

In the past fortnight, global equities closed higher during a subdued, holiday-shortened trading week due to Thanksgiving festivities and had an early closure on Friday. The most notable event was the closely watched third-quarter earnings report from NVIDIA, the artificial intelligence chipmaker and currently the world's sixth-largest company by market capitalization. Despite beating earnings and revenue estimates, NVIDIA's shares fell due to cautious guidance related to export restrictions to China. This weakness in NVIDIA contributed to the underperformance of the Nasdaq Composite Index, although growth stocks, in general, outperformed value stocks.