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US stocks hovered near record highs on Friday, with the Nasdaq lagging as post-election euphoria drifted and China’s latest stimulus plan fell flat.
The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped below the flat line. The Dow Jones Industrial Average (^DJI) rose 0.6% to cross the 44,000 level for the first time.
Stocks drifted higher to end a stellar week of gains driven by optimism that President-elect Donald Trump’s policies will boost the economy. The initial “Trump trade” rush appeared volatile on Friday. The dollar (DX=F) and Treasury yields, for instance, have given up a good chunk of their post-election gains.
Disappointment over China’s new fiscal stimulus drew investor attention, putting pressure on Chinese stocks and oil prices. The $1.4 trillion plan to refinance local government debt left investors unconvinced of its potential to spur a faltering economy.
Even so, Wall Street major gauges are still on track for strong weekly wins after racking up more records on Thursday as the Federal Reserve delivered the expected interest rate cut. The S&P 500 is closing in on crossing the 6,000 level for the first time.
On the equities side, Tesla (TSLA) hit $1 trillion in market cap as shares of the electric vehicle giant soared as much as 7%. The stock has been on fire this week following Donald Trump’s White House victory.
Trump Media & Technology Group stock (DJT) leaped 10% and was briefly halted for volatility after Trump said he would not sell his shares in the company, the home of Trump’s social media platform, Truth Social.
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Chinese stocks fall, drag on Nasdaq
Chinese stocks fell on Friday, dragging on the tech-heavy Nasdaq Composite (^IXIC), which hovered near the flatline.
Disappointment over China’s new fiscal stimulus sent shares of Chinese tech stocks lower. The recently announced $1.4 trillion planto refinance local government debt left investors unconvinced of its potential to spur the economy.
E-commerce and cloud giant Alibaba (BABA) fell nearly 6% while PDD Holdings (PDD) also dropped 6%. Earlier this week the sector fell over concerns of potential tariffs after Donald Trump won the presidential election.
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Airbnb stock tanks after mixed Q3 earnings
Airbnb (ABNB) shares fell nearly 10% 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 the $3.72 billion expected, according to Bloomberg consensus estimates.
Bank of America (BAC) 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.
“While Airbnb is expanding its geographic reach, and has a number of new growth initiatives to help to capitalize on its large bookings ecosystem, core nights growth is in line with peers and the margin growth seems less likely in 2025,” Post said. He expects shares to rise to $154 over the next 12 months. The stock stood at roughly $133 Friday morning.
JPMorgan (JPM) analyst Doug Anmuth also has a Neutral rating on the stock and sees shares hitting $142 over the next year.
Anmuth said in a note to investors Friday morning: “Overall, we are encouraged by improving demand trends & ABNB’s early progress toward expanding beyond the core, but expect growth sustainability to remain the biggest pushback.”
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Dow hits new record to hover above 44,000 level for first time
The Dow Jones Industrial Average (^DJI) soared to new intraday highs on Friday, crossing the 44,000 level.
The blue-chip index was up nearly 0.7%, or about 290 points.
Ironically, AI chip heavyweight Nvidia (NVDA), which joined the Dow on Friday, was lower by about 1% during the session.
The major average is up about 28% year to date.
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Tesla market cap hits $1 trillion as stock soars
Tesla (TSLA) hit $1 trillion in market cap on Friday as shares of the electric vehicle giant soared as much as 7%. The stock has been on fire this week following Donald Trump’s White House victory.
CEO Elon Musk bet big on Trump, with more than $130 million in political support. The question for investors is whether the financial commitments will benefit Tesla.
On Friday, Tesla shares were trading at their highest level since March 22.
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DJT stock jumps after Trump says he will not sell shares
Trump Media & Technology Group stock (DJT) leaped 10% and was briefly halted for volatility after Donald Trump said he would not sell his shares in the company, the home of Trump’s social media platform, Truth Social.
Trump, who made the announcement on his Truth Social account, maintains a roughly 60% interest in DJT. At current levels of around $30 a share, Trump Media boasts a market cap of about $6.5 billion, giving the president-elect a stake worth around $3.9 billion.
Shares in the company have been on a wild ride over the past week, with the up-and-down moves mostly tied to Trump’s chances of reclaiming the White House.
On Thursday, the stock fell nearly 23% to reverse the gains it enjoyed the day prior as Trump clinched victory over Kamala Harris in the presidential election. But with Friday’s moves to the upside, the stock is down just 2% over the past five days, although shares have rallied by more than 60% in the past month.
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Inflation expectations fall to lowest level since December 2020
Americans are feeling increasingly better about the short-term path for inflation.
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%. November’s reading is the lowest since December 2020 and is within the 2.3% to 3% range seen in the two years before the pandemic.
Expectations for long-run inflation did tick higher, though, rising to 3.1% from 3% the month prior.
The overall consumer sentiment index popped to a reading of 73, up from 71 in October. Interviews for the survey concluded on Monday and therefore don’t capture any reactions to election results.
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Major averages drift higher, Nvidia officially part of the Dow
US stocks flirted with their record highs on Friday following the latest rate cut announced by the Federal Reserve.
Market euphoria following a Trump White House victory seemed to drift as the Nasdaq Composite (^IXIC) was little changed. The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) gained 0.3%
On Thursday the Federal Reserve announced a 25 basis point cut, a move widely anticipated by the markets.
And on Friday AI chip heavyweight Nvidia (NVDA) replaced semiconductor giant Intel (INTC) as one of the Dow’s 30 components.
The new addition should give the blue-chip index an added boost. Intel shares are down roughly 45% year to date while Nvidia is up more than 200%.
Paint maker Sherwin-Williams (SHW) also replaced Dow Inc. (DOW) as a component of the major average.
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Good morning. Here’s what’s happening today.
Here’s a look at the key market themes as you wake up today: China’s stimulus falls short, Paramount misses earnings despite streaming growth, and Nvidia hits a $3.6 trillion market cap. Meanwhile, investors have pulled back on Trump trades, uncertain about his tariff plans.
Economic data: University of Michigan consumer sentiment, (November preliminary)
Earnings: Canopy Growth (CGC), Icahn Enterprises (IEP), Sony (SONY), Paramount Global (PARA)
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia sets record with $3.6T market value after Trump win
Paramount revenue falls short as streaming boosts profit
Investors dial back ‘Trump trades’ as policy questions persist
Trump win drives $20B surge into US stocks
China green-lights $1.4T debt plan to boost economy
TSMC to halt advanced AI chip production for China, FT reports
