Stocks climbed higher Friday, with all three major averages posting another record close, as Wall Street posts its best week so far this year on Donald Trump's presidential victory and the Federal Reserve's latest interest rate cut. The Dow Jones Industrial Average climbed nearly 260 points after crossing 44,000 for the first time ever during the session, while the S&P 500 traded above 6,000 for the first time and the Nasdaq Composite also set another intraday record.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
For the Week:
The broader market saw its best week since November 2023, with the S&P 500 finishing up 4.66% and the Dow rising over 4.61%. The tech-heavy Nasdaq also outperformed its peer's performance, advancing 5.74% for the week.
Investors typically see a Republican-led government as being more business-friendly on bets for more deregulation, tax cuts and providing a more favorable environment for increased mergers and acquisitions. However, Trump's proposed tariffs on imported goods are increasing concerns over inflation.
In Economic News:
Consumer Sentiment rose to its highest level in six months as expectations grew more favorable ahead of the U.S. presidential election. The Michigan Consumer Sentiment Index rose to 73.0 in November's preliminary reading, increasing for the fourth straight month and up from October's reading of 70.5.
"Expectations over personal finances climbed 6% in part due to strengthening income prospects, and short-run business conditions soared 9% in November," said Joanne Hsu, director of Surveys of Consumers, in a statement. "Long-run business conditions increased to its most favorable reading in nearly four years."
On the Earnings Front:
Airbnb
In a letter to shareholders, Airbnb said it is focused on expanding beyond its core markets, with the average growth rate of nights booked in global expansion markets becoming double that of its core markets on an origin basis during the third quarter.
"We'll remain focused on accelerating growth while preparing for Airbnb's next chapter, which will take us beyond accommodations," the company said. "You'll see more on this next year."
Lucid Group
Pinterest
The company's board also authorized a $2 billion share buyback, according to a filing on Thursday.
Block
In the News:
Barclays analyst Adrienne Yih downgraded Bath & Body Works
"While 2H24 is largely derisked on recent guidance reset, we believe 2025 may see sustained negative sales and margin contraction," Yih wrote. "While it is entirely possible that aggressive promotions throughout 3Q24 have accelerated sales, we believe that this is an indication that conversion is struggling."
"Although BBWI's product is a consumable, there may be some categories such as candles, body, hair care, and gregrance that may be getting 'pantry loaded' with each successive promotion as [consumers] stock up on items," the analyst continued.
Yih added that she expects the U.S. consumer to continue to weaken into 2025, which could further harm BBWI's performance.