U.S. stocks ended higher on Friday, marking a fourth straight week of gains. However, notable exceptions to this upward trend were observed in the communication services and Technology sectors.

Trading volumes were impacted by the Thanksgiving holiday, with many away for the long weekend.

Friday’s economic calendar had only the S&P Global Flash U.S. Composite PMI, revealing a drop in private sector employment for November—the first since June 2020. 

Nvidia Corp. slid after reports that the company delayed the launch of a new artificial-intelligence chip for its Chinese customers.

Concurrently, there were signs indicating a potential struggle in the bond rally as ten-year U.S. yields approached 4.5%.

A court ruling led Germany to suspend its debt ceiling, causing 10-year German Bunds to rise. This movement was mirrored in other European rates, subsequently impacting U.S. Treasuries.

For the week, the Dow saw an increase of 1.27%, while the S&P 500 and Nasdaq Composite rose by 1% and 0.89%, respectively.

Here are the closing levels on Friday, November 24th, 2023: 

The shortened trading week due to the holiday meant limited market activity.

Notable events included Nvidia’s stock decline following a strong earnings report and the rise in Treasury yields.

Retail investors displayed significant confidence, as evidenced by a net purchase of +$4.8B in cash equities. This marks the highest weekly inflow since April 2022.

The influx of capital indicates strong confidence among investors. This sentiment is bolstered by expectations of the Fed halting rate hikes and the possibility of an impending rate cut.

However, signs of market fatigue may be emerging. Following four consecutive weeks of gains, profit-taking is a reasonable expectation as the year-end approaches.

Unless major negative news emerges, any potential market decline is likely to be met with buyers looking to capitalize on dips.

Wishing you a belated Happy Thanksgiving!

Source: CBOE, Bloomberg 

This commentary is written by James Gomes, a seasoned finance industry veteran with extensive experience of over 30 years, including a substantial tenure at a reputable U.S. bank exceeding 20 years. 

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