U.S. stocks are set to conclude their best week in a year, with modest movements observed on Friday. The S&P 500 climbed 0.3% during afternoon trading. It is on track for its most significant weekly gain since early November 2023. The Dow Jones Industrial Average increased by 230 points, or 0.5%, by midday Eastern time, while the Nasdaq composite remained mostly unchanged. This quiet trading session follows a week of gains after significant developments, including Donald Trump’s presidential election victory and the Federal Reserve’s decision to cut interest rates, aimed at easing economic conditions.
- Susie Wiles, a seasoned Republican strategist from Florida, has been appointed as chief of staff, reflecting her significant contributions to Donald Trump’s campaign victories and strategic success.
- Wiles’s political experience includes guiding campaigns for high-profile figures such as Rick Scott, Ron DeSantis, and Trump, earning her respect within Republican circles for her leadership and strategic insights.
- Her strong connections, developed since her early political career in the 1970s, and her consistent loyalty to Trump, despite a brief association with DeSantis, have strengthened her standing in the party.
- The appointment has been well-received among Republican leaders, who recognize her reputation for collaboration and team-building, essential traits for overseeing Trump’s policy implementation.
Several companies led the market’s positive performance. Axon Enterprise, famous for its Taser and body camera products used by law enforcement, surged 21.5%. The company reported stronger-than-expected quarterly profits and raised its full-year revenue forecast to $2.07 billion, projecting a 32% growth. Expedia Group also impressed investors, with its stock rising 6.2% after surpassing profit expectations. The company reported a 9% increase in booked room nights compared to the previous year.
However, not all companies shared in the week’s gains. Airbnb experienced an 8.3% decline after issuing a mixed third-quarter earnings report and a disappointing forecast for the fourth quarter. Pinterest also faced a decline, with its stock sliding 16.7% due to lower-than-expected revenue guidance, despite surpassing Wall Street’s sales and profit targets.
In the bond market, longer-term Treasury yields eased slightly. A preliminary report from the University of Michigan indicated a fourth consecutive monthly rise in U.S. consumer sentiment, reaching a six-month high. The survey, conducted before the election, showed expectations for inflation eased to the lowest level since 2020. The yield on the 10-year Treasury fell to 4.31% from 4.33% late Thursday, though it remains above mid-September levels when it was around 3.60%.
The resilience of the U.S. economy has contributed to climbing Treasury yields. Optimism persists that the economy can remain stable as the Federal Reserve continues to cut interest rates, which has helped bring inflation closer to its 2% target. Former President Donald Trump has influenced yields by promoting tariffs and other policies that economists say could heighten inflation and national debt while boosting economic growth. Consequently, traders are adjusting forecasts for future Federal Reserve rate cuts.
Internationally, Trump’s tariff discussions have raised concerns about potential trade tensions and disruptions to the global economy. European indexes were mostly down for the week. In Asia, markets in Hong Kong and Shanghai declined as investors awaited Beijing’s steps to stimulate China’s slowing economy. Chinese officials announced a significant plan to help local governments refinance debt accumulated during the COVID-19 pandemic and a property market collapse.
Worldwide financial markets have seen fluctuations as investors speculate on Trump’s proposed policies, which include higher tariffs, reduced tax rates, and lighter regulations. Caution is advised by professional investors, as price corrections could occur once policy details become clearer.