The S&P 500 and Dow Jones Industrial Average hit record closing highs during a shortened Black Friday trading session, driven by gains in technology stocks like Nvidia and Tesla, and heightened attention on retail performance as the holiday shopping season commenced.
Information technology stocks bolstered the S&P 500 and the Dow, while industrial stocks also supported the blue-chip index.
Nvidia rose by 2%, and Tesla gained 3.7%, contributing to the rally.
Meanwhile, investors closely watched consumer response to steep Black Friday discounts.
Adobe Analytics projected a record $10.8 billion in online Black Friday sales, reflecting a 9.9% increase from last year.
Retail stocks benefited, with Target up 1.7% and Macy’s climbing 1.8%.
The S&P 500 rose 0.56% to close at 6,032.44, surpassing its intraday high of 6,025.42 set earlier in the week.
The Dow increased 0.42% to 44,910.65, while the Nasdaq gained 0.83% to finish at 19,218.17.
“Retailers do a lot of importing, and inventory levels are crucial to their profitability and margins,” noted Ross Mayfield, investment strategist at Baird.
“So far, things are looking solid for the Black Friday, Cyber Monday sales.”
Chip stocks rebounded after midweek losses, with the Philadelphia Semiconductor Index rising 1.5%.
The small-cap Russell 2000 Index also edged up 0.4% as Treasury yields eased from multi-month highs.
Wall Street had dipped earlier in the week amid concerns that the Federal Reserve might adopt a cautious stance on rate cuts following strong inflation data.
Donald Trump’s recent presidential victory, along with Republican control of Congress, has further buoyed markets, with optimism around potential pro-business policies.
However, some investors remain concerned about the inflationary effects of these policies and their potential to slow global growth.
Crypto stocks also rose, fueled by bitcoin’s rally, pushing MARA Holdings up by 1.9%.
Elsewhere, Applied Therapeutics plunged 76% after the FDA declined approval for its rare disease treatment.
On the NYSE, advancing stocks outnumbered decliners by a ratio of 2.46-to-1, with 386 new highs recorded.