United States markets closed higher on Friday, with major benchmarks posting gains during a shortened session following the Thanksgiving holiday.
Thin trading volumes and strength in retail and technology shares supported sentiment, while expectations for a Federal Reserve rate cut in December continued to build.
The Dow Jones Industrial Average added 289.3 points or 0.6% to finish at 47,716.4, the S&P 500 added 36.5 points or 0.5% to 6,849.1, and the Nasdaq Composite advanced 151 points or 0.7% to close at 23,365.7.
A quarter-point cut from the Fed next month would represent the central bank’s third consecutive reduction, following moves in September and October.
Traders increased their expectations for easing after New York Fed President John Williams said last week that there was room for “a further adjustment in the near term to the target range for the federal funds rate”.
According to the CME Group FedWatch Tool, markets are now pricing an 87.4% chance of a 25 basis point cut.
Despite Friday’s gains, the session marked the end of a mixed month for the broader market. A pullback in technology stocks weighed heavily on the major indices in November, as concerns resurfaced over the longer-term profitability of AI-focused companies.
The Nasdaq fell nearly 1.5% for the month, snapping a seven-month winning streak. The S&P 500 and Dow managed slight monthly gains of 0.1% and 0.3%, respectively, supported by this week’s rally, securing their seventh straight month of increases.
Across the week, the Dow gained more than 3%, the S&P 500 rose almost 4%, and the Nasdaq Composite climbed more than 4%.
On the bond markets, yields on the 10-year and 2-year Treasuries were 0.6% higher, standing at 4.017% and 3.497%, respectively.
