Nasdaq and S&P 500 End Week Higher Ahead of Trump’s Return
Wall Street’s three main indices closed the week with solid gains, supported by an optimistic market outlook on the economy and anticipation of Donald Trump’s return to the presidency.
The Dow Jones rose 0.78% to close at 43,487.83 points, ending the week with a 3.69% increase—its largest weekly gain since late November. The S&P 500 advanced 1% to 5,996.66 points, up 2.91% for the week, also marking its biggest rise since late November. Meanwhile, the Nasdaq Composite climbed 1.51% to 19,630.20 points, with a weekly gain of 2.45%, its best performance since early December.
Ten of the eleven sectors in the S&P 500 closed higher on Friday, led by consumer discretionary stocks, which rose over 2%. The healthcare sector was the only one to decline, down 0.26%. Within the Dow Jones, notable gainers included Nvidia (+3.10%) and Amazon (+2.39%).
Optimism Over Economic Data
This week’s inflation data eased concerns about renewed price pressures and fueled hopes that the Federal Reserve may continue cutting interest rates this year.
Next week, 41 companies are set to release earnings, including Netflix, United Airlines, American Express, and Procter & Gamble.
Earnings Season Update
The earnings season also buoyed markets, with strong results from major banks such as Wells Fargo, JP Morgan, and Goldman Sachs. The S&P 500 banking index surged nearly 7% this week.
So far, 42 S&P 500 companies (8% of the index) have reported Q4 2024 earnings, with 79% beating profit expectations and 67% surpassing revenue estimates, according to FactSet.
On Monday, U.S. markets will be closed for Martin Luther King Jr. Day. However, investors are expected to closely monitor President-elect Donald Trump’s first actions as he returns to the White House.
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