December Dow Forecast: Late-Month Rally and Dovish FED Suggest New Highs in December
The Dow wrapped up November with a small but meaningful advance, signaling steadier ground after a month marked by abrupt swings.
Quick overview
- The Dow Jones Industrial Average ended November with a modest gain of 0.32%, indicating improved investor sentiment after a volatile month.
- While the NASDAQ experienced its first monthly decline since March, the S&P 500 managed a slight increase of 0.13%.
- Tech stocks showed mixed performance, with Nvidia and AMD declining significantly, while Alphabet and Meta posted strong gains.
- Investors are closely watching for developments regarding the potential successor to Fed Chair Powell, with an announcement expected before Christmas.
Live DOW Chart
The Dow wrapped up November with a small but meaningful advance, signaling steadier ground after a month marked by abrupt swings.
The Dow Jones Industrial Average ended November with a slight monthly gain, closing on an upswing that suggests investors may be positioning for further strength in the weeks ahead. Despite a turbulent stretch through much of the month, the index managed to stabilize and regain momentum as sentiment improved late in the period.
Market Landscape Across November
US equities strung together a fifth consecutive winning session to end the week, placing all three major indices solidly in positive territory over the short term. Monthly results, however, reflected a more mixed backdrop. The NASDAQ slid 1.51%, marking its first monthly pullback since March as several large-cap tech names weakened. The S&P 500 eked out a 0.13% rise, while the Dow gained 0.32%, a modest advance that belied the volatility seen earlier in the month.
How the Dow Traded Throughout the Month
The Dow briefly touched a new record early in November before losing traction as risk appetite cooled. For much of the month, the index drifted lower. That trend reversed sharply in the final week, with improving economic expectations and confidence in a likely December Federal Reserve rate cut fueling a broad rebound. Tech stocks led the charge, but buying interest spread across multiple sectors, helping restore momentum.
Major Index Performance — Friday Close
Dow Jones Industrial Average
- +289.30 points (+0.61%) to 47,716.42
- Weekly gain: +1,907.77 points (+4.16%)
S&P 500
- +36.48 points (+0.54%) to 6,849.09
- Weekly gain: +293.32 points (+4.47%)
NASDAQ Composite
- +151 points (+0.65%) to 23,365.69
- Weekly gain: +1,202.85 points (+5.43%)
Tech Standouts and Underperformers
November exposed stark contrasts within the tech space. Nvidia posted a 12.6% drop—its weakest showing since March—while AMD fell 15.11%. Microsoft and Amazon also retreated, slipping 5.0% and 4.05%. On the upside, Alphabet jumped 13.87%, emerging as one of the month’s strongest performers. Meta surged 9.04% this week alone, trimming earlier losses to finish nearly flat, while Broadcom rose 9.02%.
Notable Decliners in November
- Raytheon: –36.14%
- Super Micro Computer: –35.76%
- Strategy: –35.66%
- Celsius: –33.35%
- Roblox: –29.00%
- Trump Media & Technology Group: –27.66%
- Oracle: –26.66%
- DoorDash: –25.44%
Standout Monthly Gainers
- Biogen: +23.14%
- Merck & Co: +21.09%
- Alphabet A: +16.61%
- Marriott International: +15.84%
- Western Digital: +15.53%
- Southwest Airlines: +13.60%
- First Solar: +12.91%
- FedEx: +10.42%
Key Events to Watch
Investors are monitoring developments around the search for a successor to Fed Chair Powell, with Treasury Secretary Bessent interviewing candidates and signaling a strong likelihood of an announcement before Christmas. The shortlist includes NEC Director Hassett, former Fed Governor Warsh, BlackRock CEO Rider, and current Fed Governors Waller and Bowman.
Meanwhile, due to the government shutdown, the September PCE and personal income/spending data will now be released on December 5. September CPI came in slightly cooler than expected, rising 0.3% month over month on a rounded basis.
Dow Jones Live Chart
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