Friday saw an increase in the Dow Jones Industrial Average as the major averages tried to extend their winning run to four weeks.
The 30-stock Dow increased by 101 points, or 0.3%. Nasdaq Composite dipped 0.2% while the S&P 500 moved close to the flatline.
As Black Friday ushered in the holiday shopping season, trading activity for major retail equities was uneven. While Amazon had a 0.1% increase, Walmart saw a 0.8% increase.
“Our checks indicate that this Black Friday will see flat traffic patterns as budget-conscious consumers pull back and prioritise gifts for others above gifts for themselves,” TD Cowen retail analyst Oliver Chen wrote in a report.
The Dow and S&P 500 are each up 1% for the week. During that time, the Nasdaq Composite has likewise increased by 1%. Since June, the S&P 500 and Nasdaq have had their longest winning run in a weekly basis. In contrast, the Dow hasn’t recorded a weekly run this extended since April.
The actions are being taken in the hopes that inflation is slowing down and the Federal Reserve may be done hiking rates, as Treasury yields this week fell to multimonth lows. On Friday, the benchmark rate was approximately 4.468%, up 5 basis points.
Chief investment officer of Horizon Investments Scott Ladner stated, “The market’s anticipation for the volatility of interest rates is continuing to plummet.” This suggests that the market is finally accepting the notion that 4% to 5% interest rates are the appropriate range for 2024 throughout the curve, which the equities market can manage.
Thursday’s Thanksgiving holiday closure of the U.S. stock market occurs at 1 p.m. Following the 10-year Treasury yield’s decline to levels not seen since September, the main averages closed higher on Wednesday.
Source (CNBC)
