On Friday, U.S. stocks were on track for their best week in a year, with some modest movements marking the end of the trading week.
The S&P 500 was up 0.3% in afternoon trading, set to achieve its most significant weekly gain since early November 2023.
The Dow Jones Industrial Average saw a rise of 230 points, or 0.5%, as of 12:09 p.m. Eastern time, while the Nasdaq composite remained nearly unchanged.
The week started strong with big gains and record-breaking performances following Donald Trump’s victory in the presidential election and another interest rate cut by the Federal Reserve to support the economy’s growth.
Axon Enterprise, a company that specializes in selling Tasers and body cameras used by police officers, was one of the leaders in the market with a remarkable 21.5% jump after reporting profits for the latest quarter that exceeded analysts’ expectations.
Expedia Group also experienced a rise of 6.2% after surpassing profit projections. The company reported a 9% increase in booked room nights compared to the previous year.
However, Airbnb faced a setback with an 8.3% drop in its stock value after its third-quarter earnings report revealed mixed results, leading to disappointing forecasts for the fourth quarter that did not meet investor expectations.
Similarly, Pinterest saw a decline of 16.7% following lower revenue guidance, even though it outperformed Wall Street’s sales and profit targets.
A preliminary report indicated that U.S. consumer sentiment rose for the fourth consecutive month to its highest level in six months.
The survey conducted by the University of Michigan, before the election on Tuesday, also revealed a decrease in inflation expectations for the upcoming year, reaching the lowest level since 2020.
The yield on the 10-year Treasury fell from 4.33% to 4.31% by the end of Thursday. Even though this represents a decline, the yield remains significantly higher compared to mid-September when it was around 3.60%.
Treasury yields have been on the rise as the U.S. economy continues to display resilience, contrary to earlier concerns.
The Federal Reserve’s efforts to keep the job market active, alongside maintaining inflation close to its 2% target, remain crucial for sustaining economic stability.
Investor speculation regarding potential tariff policies and economic growth strategies proposed by Trump has influenced the forecast of future rate cuts by the Fed. While lower interest rates can stimulate economic growth, they also have the potential to accelerate inflation.
Trump’s discussions on tariffs have sparked apprehensions regarding trade tensions and global economic disruptions, causing European indexes to experience mostly downward trends with a projected losing week.
Markets in Hong Kong and Shanghai dipped as investors awaited Beijing’s initiatives to boost the Chinese economy, following a meeting of the legislature’s Standing Committee.
Officials unveiled a 6 trillion yuan ($839 billion) plan over three years to assist local governments in refinancing their extensive debt accumulated during the COVID-19 pandemic and the property market collapse.
The fluctuating global financial markets reflect investor uncertainties surrounding Trump’s economic policies. Professional investors are urging caution, anticipating volatile market reactions as policy proposals from negotiations evolve.
Domestically focused U.S. banks and companies have experienced significant shifts amidst the evolving economic landscape. Trump Media & Technology Group, a stock closely associated with the president-elect, saw an 11.6% rise on Thursday, contributing to a modest weekly gain.
