Dow Jumps To New Record Closing High

Continuing the momentum from Thursday, stocks maintained their upward trajectory on Friday, with the Dow once again spearheading the gains, reaching a new record high close.

All major indices closed in positive territory. The Dow surged by 426.16 points, or 1.0%, finishing at 44,296.51. The S&P 500 gained 20.63 points, or 0.4%, to close at 5,969.34, while the Nasdaq rose by 31.23 points, or 0.2%, concluding the day at 19,003.65.

This sustained upward movement enabled the major indices to experience solid weekly gains, partially compensating for last week’s sharp decline. Over the week, the Dow rose by 2.0%, with the Nasdaq and S&P 500 both appreciating by 1.7%.

Stock markets rallied initially due to President-elect Donald Trump's clear victory earlier in the month, although the subsequent week saw some retreat before a recent resurgence.

The market advancement persisted even as Nvidia (NVDA) shares fell by 3.2%. Nvidia's shares were volatile, eventually closing Thursday with a modest 0.5% increase following positive third-quarter earnings and revenue reports.

Overall, trading appeared to be somewhat muted as investors awaited significant U.S. economic data the following week, notably the Federal Reserve's preferred measures of consumer price inflation.

In individual stock news, Gap (GAP) shares soared after the retailer posted better-than-expected third-quarter earnings and raised its full-year forecast. Conversely, Intuit (INTU) shares faced pressure despite exceeding fiscal first-quarter expectations, due to disappointing current-quarter guidance.

On the economic front, revised data from the University of Michigan indicated consumer sentiment in the U.S. improved less than initially estimated in November. The consumer sentiment index for November was downgraded to 71.8 from a preliminary 73.0, defying expectations for an upward revision to 73.7. Nonetheless, the index remained higher than October’s final reading of 70.5, marking its highest level since April's 77.2.

Sector-wise, networking stocks emerged as stellar performers, propelling the NYSE Arca Networking Index up by 2.1%. There was also notable strength among computer hardware stocks, with the NYSE Arca Computer Hardware Index climbing 1.8% to achieve its best close in over three months. Housing stocks also advanced significantly, leading the Philadelphia Housing Sector Index to rise by 1.6%. Banking, biotechnology, and oil service stocks showed marked strength, whereas utilities stocks retreated slightly.

Regarding international markets, the Asia-Pacific showed mixed results on Friday. Japan's Nikkei 225 Index increased by 0.7%, whereas Hong Kong’s Hang Seng Index fell by 1.9%, and China’s Shanghai Composite Index plummeted by 3.1%.

In Europe, the principal markets showed upward movement. The U.K.'s FTSE 100 Index advanced by 1.4%, Germany’s DAX Index increased by 0.9%, and France’s CAC 40 Index edged up by 0.6%.

In the U.S. bond market, treasuries experienced modest strength following a decline in the previous two sessions, resulting in the yield on the benchmark ten-year note, inversely related to its price, decreasing by 2.2 basis points to 4.410%.

Looking ahead, next week’s trading may be subdued owing to the Thanksgiving Day holiday on Thursday. Nonetheless, traders will be attentive to U.S. economic updates, especially the Fed's favored inflation metrics, reports on durable goods orders, new home sales, weekly jobless claims, and the minutes from the latest Fed meeting.