After experiencing a decline on Wednesday, the stock market rebounded on Friday, as trading resumed in the wake of the Thanksgiving holiday. This upward movement in the markets helped the major indices recover the losses from the previous session, propelling the Dow Jones Industrial Average and the S&P 500 to achieve new record closing highs.
Although the major indices retreated slightly from their peak levels towards the close, they still ended the day on a positive note. The Dow increased by 188.59 points, or 0.4%, reaching 44,910.65. The Nasdaq rose by 157.69 points, or 0.8%, to 19,218.17, while the S&P 500 gained 33.64 points, or 0.6%, closing at 6,032.38.
For the week, which was shortened by the holiday, the Nasdaq and S&P 500 both saw a 1.1% increase, with the Dow surpassing them by climbing 1.4%.
The rally on Wall Street was largely driven by traders looking to acquire stocks at lower valuations following Wednesday's downturn. The semiconductor sector notably contributed to the recovery, with the Philadelphia Semiconductor Index surging by 1.5% after falling to its lowest intraday level in over two months in the previous session.
This boost in semiconductor stocks was buoyed by news from Bloomberg indicating that the Biden administration is contemplating limiting sales of semiconductor equipment and AI memory chips to China, finding a middle ground amidst previously considered stricter restrictions.
Most other major sectors experienced more moderate shifts, as many traders remained off the trading floor due to Thursday's holiday and in anticipation of the early market closure later in the day.
Lackluster U.S. economic data releases probably led some traders to stay on the sidelines, as they await several significant reports set to be released the following week.
Among these, the Labor Department's monthly employment report is expected to be a central focus next week, alongside reports on manufacturing and service sector activity that are also likely to capture attention.
**Global Markets Overview**
In the international markets, stock performances across the Asia-Pacific region were mixed on Friday. Japan’s Nikkei 225 Index dipped by 0.4%, whereas China’s Shanghai Composite Index gained 0.9%.
Conversely, European markets recorded gains throughout the session. Germany's DAX Index increased by 1.0%, France's CAC 40 Index rose by 0.8%, and the U.K.'s FTSE 100 Index edged up by 0.1%.
In the bond market, U.S. treasuries continued their ascent from Wednesday’s session. This resulted in a decline in the yield on the benchmark ten-year note, which inversely relates to its price, by 4.8 basis points to 4.194%.
**Outlook**
Looking ahead, significant attention next week will be on the Labor Department’s monthly jobs report, along with other reports concerning manufacturing and service sector activity, which are anticipated to draw interest from market participants.
