US stock prices moved higher on Friday to kick off a shortened trading session, with the focus on incoming President Donald Trump’s tariff agenda and the Black Friday shopping rush key for retailers.
The Dow Jones Industrial Average (^DJI) led the way early Friday, rising about 0.3%, while the S&P 500 (^GSPC) added 0.2%. The tech-heavy Nasdaq Composite (^IXIC) also edged higher by about 0.2% after all three indexes retreated from record highs on Wednesday.
On the last day of trading in November, key gauges are on track for monthly gains despite a pullback in the rally following Trump’s decisive election victory. The S&P 500 is near its latest record high and will post its best month since February if an indicated 5% gain continues.
But a quiet session on Wall Street is in store as markets reopen after the Thanksgiving break, with Friday’s trading set to end early at 1:00 PM ET.
Investors continued to weigh the likely consequences – and the impact on inflation – of the president-elect’s promise to impose hefty new tariffs on key U.S. trading partners Mexico, Canada and China. Hopes for a softening of that plan got a boost when Mexican President Claudia Sheinbaum said she is confident a tariff war can be averted after a phone call with Trump.
Elsewhere on the trade front, optimism grew that the looming US restrictions on Chinese chips will be less severe than expected. ASML (ASML) and other European chip-related stocks rose after Bloomberg reported Thursday that the Biden administration is considering new restrictions that would fall short of previous proposals.
Meanwhile, investors are keeping a close eye on Black Friday sales, the unofficial kickoff to the holiday shopping season. Eyes are on how successful retailers will be in encouraging Americans to buy in stores, as financially strapped consumers have become cautious with their discretionary spending.
Analysts predict a solid season, but not as robust as last year. Shares of Target (TGT), Walmart (WMT) and Best Buy (BBY) were in the green in premarket trading.
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