Market Navigates Holiday Hush: U.S. stocks danced in a holiday-shortened trading session, displaying little movement as investors cautiously observed the kickoff of the seasonal shopping spree. The S&P 500 and Dow made modest gains, while the Nasdaq faced a slight dip, affected by weakness in mega-cap momentum stocks.
Despite mixed macroeconomic data and a shortened post-Thanksgiving session, the market showed signs of a promising year-end rally. Peter Cardillo, Chief Market Economist at Spartan Capital Securities, noted, “We’re seeing a market that’s on the right path of a year-end rally.” As retailers globally offered enticing “Black Friday” discounts, consumers showed a frugal approach, seeking bargains amid concerns about the higher cost of money impacting their pockets.
A survey by the NRF indicated that U.S. shoppers plan to spend an average of $875 on holiday purchases this year, marking a 5% annual increase. S&P Global‘s PMI signaled steady U.S. business activity in November, but private sector employment saw its first decline in nearly 3-1/2 years, possibly influenced by the Federal Reserve’s restrictive monetary policy.
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Looking ahead, key data releases include the Commerce Department’s second estimate on third-quarter GDP and the wide-ranging Personal Consumption Expenditures (PCE) report, offering insights into the Fed’s rate-hike impact. The Dow Jones Industrial Average rose 117.12 points, the S&P 500 gained 2.72 points, and the Nasdaq Composite dropped 15.00 points.
In sector performance, healthcare led gains, while communication services and tech closed in the red. Notable market movements included Nvidia’s dip due to a reported delay in launching its China-focused AI chip and IRobot’s surge following news of Amazon’s likely approval for its acquisition.
Market sentiment favored advancers, with the S&P 500 recording new highs. U.S.-listed shares of Chinese EV maker Xpeng rose after Volkswagen announced plans for a new platform for entry-level electric vehicles in China. In summary, a subdued yet cautiously optimistic trading session unfolded, reflecting the delicate balance of market forces in the holiday atmosphere.