S&P 500 closes at an all-time high and the NASDAQ makes a record-breaking close on Black Friday as investors remain optimistic about a coronavirus vaccine
The S&P 500 rose to an all-time high and the Nasdaq saw a record-breaking close on Friday as investors remained optimistic about the distribution of a COVID-19 vaccine.
Stocks on Wall Street experienced encouraging gains as all three indexes rose amid a holiday-shortened week. U.S. markets closed at 1pm EST on Friday after being shut for the Thanksgiving holiday.
The S&P 500 gained 8.7 points, or 0.24%, at 3,638.35; The Dow Jones Industrial Average rose 37.9 points, or 0.13%, to 29,910.37; and the Nasdaq Composite added 111.44 points, or 0.92%, at 12,205.85.
It's the first time the Dow Jones has crossed 30,000 points.
All three benchmark indexes, including the S&P 500, Nasdaq and the Dow Jones, experiened gains this week amid the Thanksgiving holiday season
The S&P 500 gained 8.7 points, or 0.24 per cent, at 3,638.35 on Friday, which was an an all-time high for the index
The Nasdaq Composite saw an additional 111.44 points, or 0.92 per cent, at 12,205.85, on Friday
Positive developments on the vaccine front have driven double-digit gains in the major indexes this month as investors look forward to progress in gaining control over the pandemic that plunged the global economy into its deepest slump since the 1930s.
That optimism persisted this week even as one vaccine candidate suffered a setback and cases of coronavirus remain at elevated levels.
Britain gave drugmaker AstraZeneca the green light after experts raised questions about the vaccine's trial data.
As US hospitalizations for coronavirus set a grim record of more than 89,000, the race for a medical solution to the pandemic has led to promising vaccines from Pfizer Inc, Moderna Inc and others, fueling optimism for light at the end of the tunnel.
The Dow Jones Industrial Average on Friday crossed 30,000 points for the first time this week on Tuesday
Optimism over a COVID-19 vaccine from companies like Astrazeneca and Pfizer prompted market gains
Health care companies also posted solid gains. Moderna jumped 16.4% and Pfizer rose 1.9%. The two companies earlier this month released results showing their COVID-19 vaccine candidates were highly effective in tests.
On Friday, the US has recorded more than 12.9 million confirmed cases and a death toll of 264,163.
S&P 500 was bolstered by gains in technology companies like Apple, Tesla and Zoom Video Communications, which become popular during the pandemic with online classes and new work-from-home operations.
Tesla rose 2.1% and Zoom Video Communications gained 6.3%. The two stocks have been market darlings so far this year with gains of 600% or more. Apple Inc rose 0.5 per cent.
Pictured: Zoom Video Communications on Friday gained 6.3 per cent as investors continue to push behind tech companies
Apple Inc. just 0.5 per cent on Friday -a small notch compared to Zoom Video Communications or Tesla Inc.
Tesla Inc's shares rose 2.1 per cent before the market closed down on Friday at 1pm EST
Tech shares have led the market's climb back from its plunge in March as investors bet giants such as Apple and Microsoft will keep raking in the profits whether Americans are forced to stay home or the economy begins to return to something resembling normalcy.
'It's an abbreviated session and volume is light, so the only conclusion is that the rally is not faltering for now,' said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, told Associated Press.
'It does bode well for next month,' Cardillo told Reuters. 'Will we see a Santa rally? Most likely. Will it be as robust as November? That's a big question mark.'
Meanwhile, retailers were hoping that their slumping sales got a boost from shoppers on Black Friday but early indications are that store traffic was light.
However, online shopping was expected to reach record highs on Friday as more Americans make purchases on computers instead of in-person.
A survey from Adobe, viewed by The New York Post, believed the online spending would increase from 20 to 42 per cent - or between $8.9billion and $10.6billion.
Pictured: A Best Buy employee wearing a face mask counts customers he lets in to shop on Black Friday
The pandemic has brought significant changes to the traditional Black Friday shopping holiday. Many retailers are beefing up their safety protocols, moving their doorbuster deals online and curbside pickup options as a last grasp at sales before the year ends.
Retailers need a boost from Black Friday and holiday shopping altogether to try and recoup sales lost to the pandemic.
'Black Friday has been somewhat tarnished - traffic is down due to the pandemic - but the good news is e-commerce sales have reached a new record,' Cardillo told Reuters. 'That's encouraging.'
Macy's shares fell 1.4% while shares of Walmart showed a slight decline. Shares of the online marketplace Etsy, meanwhile, rose 10.7%.
Shares of Walt Disney Co dipped 1.3% after the company said it would lay off about 32,000 workers, up from the 28,000 announced previously. Jobs will be cut mainly at Disney's theme parks.
U.S.-listed shares of iQIYI Inc fell 1.7% after Reuters reported Alibaba Group Holding Ltd and Tencent Holdings Ltd had put on hold talks to buy a controlling stake in the video streaming service.
Advancing issues outnumbered decliners on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored advancers.
Volume on U.S. exchanges was 6.82 billion shares, compared with the 11.03 billion average over the last 20 trading days.
European markets rose. Germany's DAX gained 0.4% and the CAC 40 in France rose 0.6%. Asia markets also rose Friday. The Hang Seng index in Hong Kong gained 0.8%.
The yield on the 10-year Treasury slipped to 0.84% from 0.87% Wednesday.
A man wearing a protective face mask to help curb the spread of the coronavirus walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Friday, Nov. 27, 2020, in Tokyo