Wall Street ‘froth’ marks weekly win, record high for S&P and bitcoin piercing $100K

The S&P 500 ( SP500 ) on Friday advanced 0.96% for the week to end at 6,090.27 points, posting gains in four out of five sessions. Its accompanying SPDR S&P 500 ETF Trust ( NYSEARCA: SPY ) added 0.88% for the week. Friday’s session cemented the benchmark’s ( SP500 ) 57th record closing high in 2024, and a third-straight weekly win. The index, up +27% this year, also crossed above 6,100 for the first time on record. Another asset notched a milestone this week: bitcoin ( BTC-USD ) vaulted above $100,000 for the first time. The cryptocurrency has shot up ~127% this year. “Froth [is] forming in crypto,” and in large-cap stocks, Bank of America Investment Strategist Michael Hartnett said Friday. He noted the S&P 500’s ( SP500 ) 5.3x price-to-book ratio has surpassed a March 2000 high – when the market was wrapped up in the dot-com frenzy. Meanwhile, bitcoin’s ( BTC-USD ) $2T valuation is around the size of the 11th largest economy in the world, Hartnett said in a note. The Nasdaq Composite ( COMP:IND ) also notched a record-high close on Friday, and while the Dow ( DJI ) slipped, the blue-chip gauge this week marked its first-ever finish above 45,000 points. Stocks found upside support this week from rising expectations that the Federal Reserve will continue chopping down interest rates at its December 17-18 meeting. Odds of a quarter-point rate cut climbed to 85% on Friday, a jump from 66% over the past week, according to the CME FedWatch tool . Rate-cut odds climbed further after the release of the November U.S. jobs report on Friday. Job additions of 227K exceeded the 211K consensus estimate. The unemployment rate rose to 4.2% from 4.1%, meeting forecasts. The “report emphasizes that the labor market remains strong and that policymakers at the Federal Reserve have room to work as we approach a soft landing,” Cory Stahle, economist at Indeed Hiring Lab, said. The Consumer Discretionary sector emerged as the S&P 500’s ( SP500 ) top-performing group this week. Tesla ( TSLA ) and Amazon ( AMZN ) are part of that group, and AI-related progress at the online retailer ( AMZN ) and a BofA price-target upgrade for the EV maker ( TSLA ) helped send their shares flying up +12% and +9%, respectively, for the week. Delving further into the weekly performance of S&P 500 ( SP500 ) sectors, three ended in positive territory, while eight fell. Following Consumer Discretionary at the top of the list was Communication Services. Energy was this week’s laggard. See below a breakdown of the performance of the sectors as well as their accompanying SPDR Select Sector ETFs from November 29 close to December 6 close: #1: Consumer Discretionary +5.85% , and the Consumer Discretionary Select Sector SPDR ETF ( XLY ) +4.72% . #2: Communication Services +4.11% , and the Communication Services Select Sector SPDR Fund ( XLC ) +2.57% . #3: Information Technology +3.34% , and the Technology Select Sector SPDR Fund ETF ( XLK ) +3.02% . #4: Consumer Staples -0.78% , and the Consumer Staples Select Sector SPDR Fund ETF ( XLP ) -1.0% . #5: Financials -1.78% , and the Financial Select Sector SPDR Fund ETF ( XLF ) -1.81% . #6: Health Care -2.05% , and the Health Care Select Sector SPDR Fund ETF ( XLV ) -2.12% . #7: Industrials -2.32% , and the Industrial Select Sector SPDR Fund ETF ( XLI ) -2.38% . #8: Real Estate -2.66% , and the Real Estate Select Sector SPDR Fund ETF ( XLRE ) -2.73% . #9: Materials -3.04% , and the Materials Select Sector SPDR Fund ETF ( XLB ) -3.03% . #10: Utilities -3.84% , and the Utilities Select Sector SPDR Fund ETF ( XLU ) -3.91% . #11: Energy -4.55% , and the Energy Select Sector SPDR Fund ETF ( XLE ) -4.72% . For investors looking to track the benchmark S&P 500 ( SP500 ), here are some exchange-traded funds of interest: ( VOO ), ( IVV ), ( RSP ), ( SSO ), ( UPRO ), ( SH ), ( SDS ), and ( SPXU ). For investors looking into the future of what’s happening, take a look at the Seeking Alpha Catalyst Watch to see next week’s breakdown of actionable events that stand out. More on the markets 17 stocks with rebounding operating margins – Goldman Why Gold Could Rally In 2025 Despite Recent Weakness With just a couple weeks left in 2024, here are the top 10 S&P 500 performers YTD Here are the S&P’s 500 top 10 worst performing stocks in 2024 Nvidia Q3: Blackwell Ramp Just Started

Source: Seeking Alpha