The S&P 500 approaches the 6,000 mark as Wall Street heads for its best week in a year

The S&P 500 (^GSPC) briefly topped 6,000 for the first time ever on Friday, as stocks are on track for their best week in a year.

The broad market index rose more than 0.4% to new record highs after a monster rally this week following Donald Trump’s victory in the White House. The increase also follows the Federal Reserve’s latest decision to cut interest rates by 25 basis points.

The Dow Jones Industrial Average (^DJI) also climbed to new highs on Friday, surpassing the 44,000 level for the first time ever.

Chip stocks initially soared following the victory of former president and Republican candidate Donald Trump and the Fed’s latest rate cut. But they were heading into a red Friday as analysts began to ponder the uncertainty surrounding Trump’s approach to the chip sector as he returns to the White House in January.

The PHLX Semiconductor Index (^SOX) fell more than 1%, leaving the Nasdaq (^IXIC) behind.

Nvidia (NVDA) fell 1.1%, Qualcomm (QCOM) fell 1.4%, Arm (ARM) fell 3.5%, while AMD (AMD), Broadcom (AVGO) and Micron (MU) fell less than fell 1%.

“Trump’s victory brings further uncertainty to the semiconductor sector in terms of its impact on additional Chinese restrictions, higher tariffs and CHIPS Act funding. The industry is broadly prepared for a new round of restrictions on chip and equipment supplies to China,” Jefferies said. (JEF) analysts wrote on Friday.

“Trump’s victory was clearly the biggest event this week, and many semiconductor stocks, especially semicaps, will likely trade sideways until there is clarity on further Chips Act restrictions, tariffs and funding,” Jefferies said.

Bitcoin (BTC-USD) hovered around $76,000 on Friday as the high-risk rally following Donald Trump’s White House victory was on track to end the week on a high.

The cryptocurrency spiked to new highs on Wednesday following the presidential election results. Trump championed bitcoin during his campaign and advocated the creation of a national crypto stockpile if he were elected to the White House.

Chinese stocks fell on Friday, lagging the tech-heavy Nasdaq Composite (^IXIC), which hovered near the flatline.

Disappointment with China’s new fiscal stimulus caused shares of Chinese technology stocks to fall. The recently announced $1.4 trillion local government debt refinancing plan left investors unconvinced of its potential to stimulate the economy.

E-commerce and cloud giant Alibaba (BABA) fell almost 6%, while PDD Holdings (PDD) also fell 6%. Earlier this week, the industry faced concerns about possible tariffs after Donald Trump won the presidential election.

Shares of Airbnb ( ABNB ) fell nearly 10% on Friday after posting mixed third-quarter results. Quarterly earnings per share of $2.13 were lower than Wall Street’s forecast of $2.15, and revenue of $3.73 billion came in above the expected $3.72 billion, according to Bloomberg consensus estimates.

Bank of America (BAC) analyst Justin Post maintained his neutral rating on the stock, raising his near-term bookings estimates for the coming 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 capitalize on its large booking ecosystem, core nights growth is in line with peers and margin growth in 2025 appears less likely,” Post said. He expects the shares to rise to $154 in the next 12 months. The stock was trading at around $133 on Friday morning.

JPMorgan (JPM) analyst Doug Anmuth also has a neutral rating on the stock and expects the shares to reach $142 in the next year.

Anmuth said in a note to investors on Friday morning: “Overall, we are encouraged by improving demand trends and ABNB’s early progress toward expansion beyond its core businesses, but expect sustainability of growth to remain the biggest headwind .”

The Dow Jones Industrial Average (^DJI) rose to new intraday highs on Friday, breaching the 44,000 level.

The blue chip index rose almost 0.7%, or about 290 points.

Ironically, AI chip heavyweight Nvidia ( NVDA ), which joined the Dow Jones on Friday, was down about 1% during the session.

The key average is up about 28% year to date.

Tesla (TSLA) reached a market cap of $1 trillion on Friday, as shares of the electric car giant rose as much as 7%. Stocks were on fire this week after Donald Trump won the White House.

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 traded at their highest level since March 22.

Shares of Trump Media & Technology Group (DJT) rose 10% and were briefly halted due to volatility after Donald Trump said he would not sell his shares in the company, home to Trump’s social media platform Truth Social.

Trump, who made the announcement on his Truth Social account, has a roughly 60% stake in DJT. At current levels of about $30 per share, Trump Media has a market cap of about $6.5 billion, giving the newly elected president a share of about $3.9 billion.

The company’s shares have been on a wild ride over the past week, with the up-and-down moves largely tied to Trump’s chances of winning back the White House.

On Thursday, the stock fell nearly 23% to reverse gains from the day before, when Trump emerged victorious over Kamala Harris in the presidential election. But with Friday’s upward move, the stock is down just 2% in the past five days, even though shares are up more than 60% in the past month.

Read more here.

Americans are feeling increasingly better about the short-term path of inflation.

The latest consumer sentiment survey from the University of Michigan shows that consumers expect inflation to be 2.6% a year from now, down from last month’s expectation of 2.7%. November’s figures are the lowest since December 2020 and within the range of 2.3% to 3% in the two years before the pandemic.

However, expectations for long-term inflation were higher, from 3% the month before to 3.1%.

The overall consumer confidence index stood at 73, compared to 71 in October. The interviews for the study were completed on Monday and therefore did not include responses to the election results.

US stocks flirted with record highs on Friday after the latest interest rate cut announced by the Federal Reserve.

The market euphoria following Trump’s White House victory appeared to fade as the Nasdaq Composite (^IXIC) was little changed. The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) rose 0.3%

On Thursday, the Federal Reserve announced a 25 basis point cut, a move widely anticipated by markets.

And on Friday, AI chip heavyweight Nvidia (NVDA) replaced semiconductor giant Intel (INTC) as one of the 30 constituents of the Dow Jones.

The new addition should give the blue chip index an extra boost. Intel shares are down about 45% year to date, while Nvidia is up more than 200%.

Paint maker Sherwin-Williams (SHW) also replaced Dow Inc. (DOW) as part of the main average.

Here’s a look at the top market themes as you wake up today: China’s stimulus measures are falling short, Paramount is missing out on profits despite steady growth, and Nvidia is reaching a market cap of $3.6 trillion. Meanwhile, investors have retreated from Trump’s trades, unsure of his pricing plans.

Economic data: University of Michigan Consumer Confidence, (November preliminary)

Income: Canopy Growth (CGC), Icahn Enterprises (IEP), Sony (SONY), Paramount Global (PARA)

Here are some of the biggest stories you missed last night and early this morning:

Nvidia sets a record with a market value of $3.6 trillion after Trump’s victory

Paramount’s revenue is lagging as streaming increases profits

Investors recall ‘Trump trades’ as policy questions remain

Trump’s victory sends US stocks up $20 billion

China greenlights $1.4 trillion debt plan to stimulate economy

TSMC will stop production of advanced AI chips for China, FT reports

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