US stocks experienced a modest rise on Friday as investors assessed President-elect Donald Trump’s strategy for assembling his team while simultaneously keeping an eye on bitcoin’s (BTC-USD) pursuit of the significant $100,000 benchmark.
The S&P 500 (^GSPC) advanced by 0.2%, while the Dow Jones Industrial Average (^DJI) climbed 200 points, reflecting a gain of 0.4%. In contrast, the tech-focused Nasdaq Composite (^IXIC) saw a slight decline, slipping below the flatline, after the major indices managed to close in positive territory the previous day.
Despite the mixed performance, the major indexes remained poised to wrap up the week with gains exceeding 1%, overcoming an unsteady start as the initial post-election rally lost momentum.
Wall Street is eagerly anticipating President-elect Trump’s selection for the Treasury secretary position, a pivotal decision that could significantly influence market trends given its crucial impact on the economy. Recently, the president-elect appointed Florida Attorney General Pam Bondi to assume the role of U.S. Attorney General after his earlier choice, Matt Gaetz, withdrew from consideration only a day prior.
Meanwhile, the price of bitcoin soared, hovering near the critical $100,000 threshold, driven by increasing confidence that the incoming Trump administration will enact policies favorable to the cryptocurrency sector. Bitcoin surged past the $99,500 mark early on Friday before retreating, amid growing expectations for more lenient regulatory oversight, especially after SEC Chair Gary Gensler announced his imminent resignation.
Nvidia (NVDA) shares dropped more than 2% on Friday, significantly affecting the Nasdaq Composite (^IXIC) performance. This dip followed the company’s latest quarterly results, which had left questions about the sustainability of the AI-driven stock rally. Other prominent technology stocks in the “Magnificent Seven” faced similar pressures on Friday, especially as Alphabet (GOOGL, GOOG) experienced a decline of over 1% after a notable loss exceeding 4% in the previous session.
As third-quarter earnings reports came in, it was apparent that investor sentiment about AI’s role in the market remained uncertain, presenting a challenge for tech stocks as they navigate potential regulatory changes and operational hurdles.
US economic output is surging, with businesses gearing up for anticipated lower interest rates and the transition to a new administration in Washington. The S&P Global’s flash US composite PMI, reflecting both the services and manufacturing sectors, registered at 55.3 for November, a notable increase from the previous month’s 54.1. This positive trajectory signals the fastest expansion of business activity since April 2022.
Chris Williamson, chief business economist at S&P Global Market Intelligence, emphasized that the data reflects a burgeoning optimism among businesses as they adapt to a shifting economic landscape heading into 2025, bolstered by expectations of a more favorable environment under Trump’s leadership.
In the AI sector, Super Micro Computer (SMCI), an AI server manufacturer utilizing Nvidia’s technology, saw its stock soar over 9% in early trading, placing it on track for an impressive weekly gain of over 65%. This remarkable rally follows the company’s announcement about engaging a new auditor and submitting a compliance plan to avoid potential delisting issues, as concerns over financial accountability persisted in the wake of its previous auditor’s resignation.
On another front, the stock of Reddit (RDDT) tumbled over 8% early Friday, following a Bloomberg report indicating that a key shareholder, Advance Magazine Publishers Inc., was looking to offload 7.8 million shares, raising questions about the platform’s market stability.
As dawn broke over the trading floor, stocks displayed initial fluctuations, yet major indices maintained a trajectory for a weekly finish in the green, with bitcoin making headlines by inching closer to the coveted $100,000 mark.
Bitcoin’s flirtation with the $100,000 level continues to capture investor interest, largely attributed to the anticipated regulatory shifts in the cryptocurrency space with the upcoming Trump administration, which many hope will usher in a more supportive economic environment for digital assets.