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5 stocks to watch in December – and what to look out for

Editors’ picks for companies likely to be in the spotlight

Timothy A. Clary/AFP/Getty Images

Stock prices soared to record highs in November as Wall Street looked ahead to a second term for newly elected President Donald Trump.

The S&P 500 climbed 5.7%, while the Dow Jones Industrial Average rose 7.5% and the Nasdaq Composite rose 6.2%. The Russell 2000, an index of small-cap stocks, rose nearly 11%, boosted by expectations for faster economic growth and lower taxes under Trump and a Republican-controlled Congress.

Market participants will likely continue to pay close attention to Trump and his policy proposals in December. Although Wall Street will also take into account the short-term economic outlook, especially inflation and the labor market.

The Federal Reserve is expected to make its last interest rate decision of the year on December 18. Policymakers have emphasized lately that they are in no rush to cut rates, but investors are still weighing the likelihood of another quarter-point cut in December. .

Below we take a look at some stocks that could see big price moves in the coming month.

No S&P 500 stock has gained more from Donald Trump’s re-election than Tesla (TSLA), whose CEO Elon Musk has embedded himself in the newly elected president’s inner circle after spending millions of dollars on his campaign.

Shares of the electric vehicle (EV) maker are up nearly 40% since Election Day. That increase, which has pushed the company’s market value above $1 trillion, comes at the same time the new Trump administration has pledged to roll back government support for electric cars, including a $7,500 tax break.

Wall Street expects Tesla to benefit from Elon Musk’s influence over the future president, which he could exert as both an informal adviser and co-head of the newly created Department of Government Efficiency. Trump’s transition team has reportedly already outlined plans to relax regulations on self-driving cars, which could help make Musk’s dream of launching a Tesla robotaxi service a reality. Musk could also encourage Trump to exempt Tesla vehicles from proposed tariffs on goods from China.

Tesla stock will remain in focus this month as Trump continues to staff and define the priorities of his incoming administration.

Salesforce-(CRM) reports earnings after markets close on December 3, and the results could be an early test of technology’s ability to monetize artificial intelligence and justify record stock prices.

The enterprise software giant launched Agentforce, its generative AI-powered assistant, on October 25, with the goal of having its AI agents used a billion times by the end of 2025. Salesforce is reportedly hiring 1,000 salespeople to drive adoption of the new tool. .

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