Jamie Spencer
The Dow Jones Industrial Average rose 188.59 points (0.42%) to close at 44,910.65, and the S&P 500 climbed 0.56% to 6,032.38, both hitting new intraday and closing records. The Nasdaq Composite jumped 0.83% to end at 19,218.17, rounding out a shortened trading day with strong gains.
Chip Stocks Propel Market Gains
Chip stocks fueled part of the rally after Bloomberg reported that the Biden administration was considering softer-than-expected restrictions on semiconductor equipment sales to China. Lam Research gained more than 3%, while Nvidia added over 2%. The iShares Semiconductor ETF (SOXX) rose 1.3%, highlighting investor optimism in the sector.
Broad Advances Across the Market
The S&P 500 saw a broad advance, with approximately 60% of its constituents finishing the session in the green. This robust performance helped push the index into uncharted territory as traders celebrated a winning week and month.
November Trading: A Postelection Rally
November was a standout month for equities, fueled by a postelection rally following President-elect Donald Trump’s victory.
- Dow Jones: Gained 1.4% this week, capping a 7.5% increase for November, its best month of 2024.
- S&P 500: Rose 1.1% on the week, up more than 5% in November.
- Nasdaq Composite: Added 1.1% this week, closing November with a 6% gain.
- Russell 2000: Surged 10.8% in November, benefiting from optimism about Trump’s proposed tax cuts, with a 1.2% gain this week alone.
Seasonal Tailwinds and Rate Expectations
“Heading into December, it’s hard to fade this bull market with all the things going right,” said Ross Mayfield, an investment strategist at Baird Private Wealth Management. Seasonal factors, combined with the postelection rally, have contributed to the market’s continued strength.
Expectations for lower interest rates have also supported stocks. Fed funds futures show a 66% likelihood of a 25 basis-point rate cut at the Federal Reserve’s upcoming policy meeting, which could further boost the economy and equity valuations.
Light Trading Volume During Holiday Week
Due to the Thanksgiving holiday, markets were closed Thursday and operated on a shortened schedule Friday, closing at 1 p.m. ET. Trading volume on both the New York Stock Exchange and Nasdaq was less than two-thirds of the average daily volume from the past 30 days, reflecting the lighter activity typical of holiday weeks.
