New York City, USA – Traders on the floor of the New York Stock Exchange saw the S&P 500 reach new heights on Friday in what has been a strong month for equities. The broad S&P 500 rose 0.7% and hit a fresh intraday high, while the Nasdaq Composite also saw a 0.9% increase. The Dow Jones Industrial Average climbed 347 points, or 0.7%, putting it on track for its first-ever close above 45,000.
Some of the upward momentum came from chip stocks, which surged after reports that the Biden administration was considering additional barriers on semiconductor equipment sales to China. Applied Materials and Lam Research rallied more than 3% and 4%, respectively, while Nvidia jumped over 2%. The iShares Semiconductor ETF (SOXX) also added nearly 2%.
As the week and month come to a close, traders are reflecting on a winning November largely driven by the postelection rally following President-elect Donald Trump’s victory. The Dow has gained over 1% this week, with November’s gains exceeding 7.5%. The S&P 500 and Nasdaq Composite have each seen 1% increases this week and are on track to end the month more than 5% and 6% higher, respectively, for 2024.
The Russell 2000, focused on small-cap stocks, outperformed in November amid investor optimism surrounding potential tax cuts under Trump. The index has surged about 11% this month, with a 1.4% gain this week alone. Expectations of a potential interest rate cut next month have helped boost the stock market late in the year, with Fed funds futures pricing in a 66% likelihood of a 25 basis point rate decrease at the central bank’s next policy meeting, according to CMEGroup’s FedWatch tool.
With a shortened trading day on Friday in observance of the Thanksgiving holiday, the stock market was quieter, with no significant economic data releases or corporate earnings reports scheduled. Despite the holiday slowdown, traders are hopeful as they look forward to December, remaining optimistic about the current bullish market trend and positive economic indicators.