S&P 500, Dow Jones rise after briefly hitting unprecedented levels

The Dow and S&P 500 climbed Friday, briefly hitting unprecedented levels, spurred by ongoing optimism that a second Trump administration is likely to boost economic growth. 

At 1.03 p.m. ET (18:03 GMT) the S&P 500 gained 0.4% after briefly touching the 6,000 level intraday.  The Nasdaq 100 added 0.1% and the Dow Jones rose 278 points, or 0.6% topping 44,000 for the first time ever.

All three of the major averages are on track for strong weekly gains, with the S&P 500 and the Dow higher by around 4%. The Nasdaq was the outperformer, gaining 5.6%  through Thursday’s close.

According to BofA strategists led by Michael Hartnett, the period from the US election through Inauguration Day presents what he describes as “a risk-on window of opportunity” for US stocks.

Hartnett suggests that investors favor sectors expected to benefit from potential Trump-era policies, including financials, REITs, and small caps, with an emphasis on those less exposed to long-duration debt risks. Consumer sentiment hits highest level since April

The University of Michigan's Consumer Sentiment reading climbed to 73 in November, up from 70.5 last month, beating economists' forecast of 71.

The reading was highest since April, as consumers turned more bullish on the economy, expecting an improvement in personal finances.  Fed continues to lean toward easing

The Fed cut its benchmark rate by 25 basis points to a range of 4.5% to 4.75% on Thursday, as was widely expected.

At the press conference that followed the decision, Fed Chairman Jerome Powell signaled that the Fed's plan to cut rates hadn't been derailed by a recent bout stronger economic data including the slightly hotter September inflation report. 

"Nothing in the press conference dissuaded us either from the notion that the FOMC is on track to keep lowering rates, including at its next meeting in December," UBS said in a recen tnote.

Traders were seen pricing in a 76.1% chance the Fed will cut rates by another 25 basis points in December, and a 23.9% chance rates will remain unchanged, CME Fedwatch showed. Tesla value hits $1tn ; Trump Media & technology jumps; Airbnb slides on mixed quarterly results

Tesla Inc (NASDAQ:TSLA ) rose more than 6%, adding to its post-election gains as the EV maker's market capitalization climbed to $1 trillion on Friday.

Airbnb Inc (NASDAQ:ABNB ) fell more than 7% after reporting mixed-quarterly results as earnings fell shy of analyst estimates. 

Trump Media & Technology Group Corp (NASDAQ:DJT ) climbed 14% after President-elect Donald Trump reiterated that he had no plans to sell stock of the social media company.

(Peter Nurse and Ambar Warrick contributed to this article.)

Source: Investing.com