Stocks opened Friday in positive territory and stayed there through the early close. Volume was understandably light on Black Friday, but those who did show up for the abbreviated session were in the mood to buy tech stocks, with that sector handily outperforming.
The bulk of the gains for the technology sector came from semiconductor stocks. The group rallied after a Bloomberg report suggested the Biden administration may impose sanctions on sales of semiconductor equipment and artificial intelligence (AI) memory chips to China that are not as restrictive as previously proposed.
Chip equipment maker Lam Research (LRCX, +3.2%) found itself near the top of the S&P 500 today, followed closely by KLA Corporation (KLAC, +2.4%).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
U.S. online holiday sales expected to hit records this year
Retailers Amazon.com (AMZN) and Walmart (WMT) also closed higher, climbing 1.1% and 0.7%, respectively, on the year's biggest shopping day.
Adobe Analytics estimates consumers will spend a record $10.8 billion in online sales this Black Friday, up 9.9% year over year. Cyber Monday online sales are expected to rise 6.1% to $13.2 billion. For the entire holiday season, Adobe anticipates U.S. online sales to reach $240.8 billion, an 8.4% increase over the year prior.
Amazon is the undisputed e-commerce leader, but Walmart is closing the gap. In its most recently reported quarter, the retail giant reported a 27% year-over-year increase in global e-commerce sales.
"WMT is scaling its investments in tech and e-commerce, and continued price investment has positioned it for future share gains," said Jefferies analyst Corey Tarlowe (Buy) in a November 15 note. "Overall, we expect WMT to command an increasingly large share of customer spending through bolstered omnichannel capabilities, partnerships, and services. This justifies above-historical-average growth."
As for the main indexes, the Dow Jones Industrial Average rose 0.4% to 44,910, the S&P 500 added 0.6% to 6,032, and the Nasdaq Composite climbed 0.8% to 19,218. All three benchmarks finished the week and month higher, with the Dow and S&P 500 notching their best monthly performances since November 2023.
Stocks tend to do well in December
History suggests the stock market is in store for even more upside in the final few weeks of 2024. Indeed, December tends to be one of the best for stock returns.
According to Yardeni Research, the S&P 500 has averaged a 1.31% gain in December since 1928 – falling behind just April (+1.32%) and July (1.70%).
Related content
- Is Nvidia Stock on Sale?
- Best Bargain Stocks: Black Friday Stocking Stuffers
- Stocks With the Highest Dividend Yields in the S&P 500
-
4 Money Habits Boomers Swore By That Millennials Are Walking Away FromMillennials are trading tradition for flexibility when it comes to building wealth.
-
Abu Dhabi Adventures: New Thrills, Iconic Sights and Disney’s Latest ParkDiscover the mix of culture, wildlife and modern marvels that make this Middle Eastern city a destination to watch.
-
How Much Do I Need to Retire? A Financial Professional Breaks Down Your OptionsWhat it all boils down to is will you be comfortable in retirement? Some people may rely on formulas, while others just aim for $1 million nest egg.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen StuffSome of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Bonds Pay in Good and Bad TimesBonds can act as a financial safety net through good times and bad. But different bonds carry different returns and risks, so do your homework before investing.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's StrategyInvestors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your HeirsIn troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market TodayStocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.
-
A Timeline of Warren Buffett's Life and Berkshire HathawayBuffett was the face of Berkshire Hathaway for 60 years. Here's a timeline of how he built the sprawling holding company and its outperforming equity portfolio.
