By US stocks rose on Friday as investors digested the postelection surge in major US indexes.
Stocks are headed for the best week of 2024, with the S&P 500 on track for a 4% gain, while the Nasdaq 100 is up more than 5%.
In addition to the swift outcome of the Presidential election on Tuesday, with President-elect Trump securing a second term in the White House, investors were met with another interest rate cut from the Federal Reserve.
Fed Chairman Jerome Powell slashed the benchmark rate by 25 basis points on Thursday and signaled that there are likely more rate cuts ahead as long as inflation doesn’t rebound.
“The key takeaway is the Fed continues to be dovish and this coupled with the positive seasonality, supports stocks into year-end,” Fundstrat’s Tom Lee said in a Friday note.
According to the CME Fed Watch Tool, investors see a 68% chance of another 25 basis point rate cut at next month’s Fed meeting.
Also helping push stocks to record this week is solid earnings, with third-quarter results starting to wrap up.
So far, 90% of S&P 500 companies have reported earnings results. According to Fundstrat data, 77% of those companies beat profit estimates by a median of 6%, while 59% beat revenue estimates by a median of 6%.
Investors will turn their attention to inflation data next week, with the October Consumer Price Index set to be released on Wednesday and the October Producer Price Index set to be released on Thursday.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
- S&P 500: , 5,983.71 up, 0.18%
- Dow Jones Industrial Average: 43,788.96, up 0.14% (+59.62 points)
- Nasdaq composite: 19,290.78, up 0.11%
Here’s what else is going on:
- Nvidia and Sherwin-Williams joined the Dow Jones Industrial Average on Friday, replacing Intel and Dow, respectively.
- Here are mega-cap tech’s winners and losers from Trump’s election win, according to the stock market.
- CEOs worldwide are already talking about the potential impact of tariffs on their businesses.
- The Polymarket ‘whale’ actually made $85 million on his Trump election bet, nearly double than originally thought.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil declined 1.24% to $71.34 a barrel. Brent crude, the international benchmark, was lower by 1.07% to $74.82 a barrel.
- Gold jumped 0.09% to $2,708.30 an ounce.
- The 10-year Treasury yield declined 2 basis points to 4.316%.
- Bitcoin gained 0.30% to $76,150.
