Market Momentum Builds as Dow Jones Industrial Average Crosses 44,000
The US stock market is on track for its best week of the year, driven by optimism surrounding President-elect Donald Trump’s policies and the Federal Reserve’s latest rate cut. The Dow Jones Industrial Average surged 0.6% to a new record, crossing the 44,000 level for the first time ever. The S&P 500 rose 0.4%, nearing the 6,000 level, while the tech-heavy Nasdaq Composite hovered near the flatline.
Trump’s Policies Fuel Market Optimism
The initial “Trump trade” rush was volatile on Friday, with the US dollar and Treasury yields giving up some of their post-election gains. However, investors remain optimistic about Trump’s policies, which are expected to boost the economy. The Federal Reserve’s rate cut has also contributed to the market’s upward momentum.
Nvidia Enters Dow, Tesla Hits $1 Trillion Market Cap
AI darling Nvidia officially entered the Dow on Friday, replacing chip giant Intel. Tesla’s market cap soared to $1 trillion as shares of the electric vehicle giant rose as much as 7%. Trump Media & Technology Group stock leaped 10% after Trump announced he would not sell his shares in the company.
Chinese Stocks Fall on Disappointing Fiscal Stimulus
Chinese stocks fell on Friday, dragging down the tech-heavy Nasdaq Composite. Disappointment over China’s new $1.4 trillion plan to refinance local government debt left investors unconvinced of its potential to spur the economy. E-commerce and cloud giant Alibaba fell nearly 6%, while PDD Holdings also dropped 6%.
Airbnb Shares Fall on Mixed Q3 Results
Airbnb shares fell nearly 10% on Friday after posting mixed third-quarter results. Quarterly earnings per share of $2.13 missed Wall Street’s forecast of $2.15, and revenue of $3.73 billion came in ahead of expectations. Bank of America analyst Justin Post maintained his Neutral rating on the stock, raising his near-term estimates for bookings over the next year but lowering his 2025 earnings growth outlook.
Consumer Sentiment Improves
The latest consumer sentiment survey from the University of Michigan revealed consumers expect inflation to sit at 2.6% in a year, a decrease from last month’s expectation of 2.7%. The overall consumer sentiment index popped to a reading of 73, up from 71 in October.
Market Themes and Economic Data
Investors are watching key market themes, including China’s stimulus efforts, Paramount’s earnings miss, and Nvidia’s record market cap. Economic data includes the University of Michigan consumer sentiment survey and earnings reports from Canopy Growth, Icahn Enterprises, Sony, and Paramount Global.
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