U.S. stocks experienced a climb on Friday, reflecting positive momentum from gains in the retail sector and a recovery in technology stocks, despite the session being marked by thin trading volume due to the Thanksgiving holiday. Investor sentiment was bolstered by increasing expectations for a potential cut in the Federal Reserve’s interest rates as early as December.
The Dow Jones Industrial Average rose by 0.61% to reach 47,716.42 points, while the S&P 500 increased by 0.54% to 6,849.09 points. The Nasdaq Composite also saw a gain of 0.65%, closing at 23,365.69. Notably, all major sectors within the S&P 500 posted gains, with the sole exception being healthcare, where pharmaceutical giant Eli Lilly faced a decline of 2.6%. Intel played a significant role in uplifting the index, boasting a 10.2% increase after a report indicated the company would commence shipments of Apple’s lowest-end M processor as early as 2027.
Despite the positive performance, the three main indexes recorded mixed results when viewed from a monthly perspective. The S&P 500 achieved a weekly gain of 3.73%, the Nasdaq increased by 4.91%, and the Dow climbed by 3.18%. By Friday’s close, the S&P and Dow had shifted to marginally positive territory for the month. Conversely, the Nasdaq registered a decrease of 1.51% this month, amid growing concerns regarding inflated valuations in AI and tech sectors, prompting investors to take profits and reduce exposure.
Commentators noted the subdued trading environment, with investors remaining cautious about the unpredictable future of artificial intelligence. Cole Smead, CEO of Smead Capital Management, remarked on the typical light volume following the holiday, reflecting a notion that substantial activity seemed limited.
The trading day was further complicated by a temporary disruption in futures trading, triggered by a cooling issue at CME Group’s CyrusOne data centers. This incident momentarily halted trading across currencies, commodities, and equity contracts globally. CME Group’s stock futures, which are particularly active prior to U.S. market openings, were marginally higher despite the setback. Market experts pointed out that the day’s low volume mitigated potential disruptions, emphasizing the risks associated with such technical failures and their interconnectedness within financial markets.
As the holiday shopping season commenced with Thanksgiving, Black Friday, and Cyber Monday—a critical period for major retailers—attention remained focused on consumer spending trends that would be pivotal for the retail sector’s performance in the coming weeks.
