Stock Market Rallies as AI Optimism Returns, Retail Focuses on Black Friday
US stock markets closed higher on Friday, fueled by renewed optimism surrounding Artificial Intelligence and hopes for potential interest rate cuts. The Dow Jones Industrial Average gained 0.61% to 47,716.42 points, marking a weekly increase of 3.18%, though November overall saw limited gains. The S&P 500 rose 0.54% to 6,849.09 points, and the Nasdaq Composite climbed 0.65% to 23,65.69 points, bringing its year-to-date performance in line with European markets.
Recent anxieties about an overheated AI market appear to have subsided,with investors embracing a “risk on” approach.Analyst Henning Oligmüller of Landesbank Baden-Württemberg noted a shifting risk sentiment, likely bolstered by signals from the US Federal Reserve suggesting potential interest rate reductions in December.
The focus also shifted to retail as the post-Thanksgiving “Black Friday” shopping period began. Walmart saw a 1.3% increase, while AmazonS shares rose 1.8% as its “Black Friday week” of discounts commenced. Despite widespread price reductions, industry consultant Marshal Cohen of Circana predicts spending will likely remain flat compared to last year, with potential for sales declines.
Technology stocks continued to perform strongly. Micron benefited from a new Japanese government budget aimed at bolstering AI and semiconductor development,gaining 2.7%.The investment is intended to revitalize Japan’s chip industry, including support for a new Micron manufacturing facility in Hiroshima. Chipmaker Broadcom also continued its ascent, surpassing $400 per share for the first time, with a 1.4% increase, bringing its market capitalization to nearly $1.9 trillion.
