Wall Street Sees Modest Gains as Retail Stocks Shine on Black Friday

Wall Street Opens Higher as Retail Stocks Rise on Black Friday

Wall Street’s major indexes began the shortened Black Friday trading session with slight gains, positioning themselves for a strong finish to the month. Investors were closely monitoring retail stocks, which were in the spotlight as the holiday shopping season kicked off with Black Friday discounts expected to attract millions of shoppers.

Adobe Analytics projected that online sales on Black Friday 2024 would reach a record-breaking $10.8 billion, marking a 9.9% increase from last year.

Shares of major retailers were on the rise: Target climbed 1.5%, Hasbro gained 3.7%, Costco rose 0.8%, Walmart edged up 0.4%, and Nike added 0.5%.

Ross Mayfield, an investment strategist at Baird, noted that retailers, heavily reliant on imports, face challenges with inventory levels and tariffs. Despite these concerns, he emphasized that the Black Friday and Cyber Monday sales looked promising.

By 9:49 a.m., the Dow Jones Industrial Average was up 140.39 points (0.31%) at 44,862.45, the S&P 500 had gained 13.80 points (0.23%) at 6,012.54, and the Nasdaq Composite rose 47.87 points (0.25%) to 19,108.35.

Technology stocks, including Nvidia and Apple, helped boost the S&P 500, while the industrial and financial sectors supported the Dow. Chip stocks rebounded from earlier declines, sending the Philadelphia Semiconductor Index up by 1.3%.

The small-cap Russell 2000 index rose 0.7%, benefiting from a retreat in Treasury bond yields from their recent highs.

Earlier this week, Wall Street’s major indexes had closed lower after data showed persistent inflation, leading investors to believe the U.S. Federal Reserve might take a cautious approach on interest rate cuts in 2025. Still, the three main indexes were on track for monthly gains, with the S&P 500 set for its biggest monthly rise since November 2023. The Russell 2000 index hit a record high earlier in the week and was on course for its best monthly performance this year.

Equity markets also gained momentum from Donald Trump’s victory in the U.S. presidential election earlier this month, as well as his Republican Party securing control of both houses of Congress. Investors speculated that Trump’s pro-business policies could spur economic growth and improve corporate performance, though concerns remained about inflationary pressures and their potential impact on global growth.

Traders anticipate the Federal Reserve will lower borrowing costs by 25 basis points in December but expect a pause in rate cuts in January, according to CME Group’s FedWatch tool.

In the cryptocurrency space, stocks rose as Bitcoin surged 2.5%, trading around $97,000. MicroStrategy gained 4.3%, MARA Holdings climbed 6.2%, and Bit Digital jumped 7.7%.

In a major setback, Applied Therapeutics saw its stock plunge 75% after the U.S. Food and Drug Administration declined to approve its drug for treating a rare genetic metabolic disease.

Given the lighter trading volumes following Thursday’s Thanksgiving holiday, analysts expect stock movements to be more volatile. On the NYSE, advancing stocks outnumbered decliners by a ratio of 3.27-to-1, while on the Nasdaq, advancing issues led decliners by 2.14-to-1.

The S&P 500 recorded 19 new 52-week highs, with no new lows, while the Nasdaq Composite saw 75 new highs and 10 new lows.

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