The three US stock indexes finished the week higher, and the Dow Jones index jumped 1.78% in a short week to mark American Thanksgiving Day. On the other hand, the Standard & Poor’s index rose by 1.53%, while the Nasdaq, which was loaded with technology stocks, stabilized and settled up 0.72%.
The Dow Jones Industrial Average rose 152.97 points, or 0.45%, on Friday to close at 34,347.03 points, marking the third consecutive session of gains. On the other hand, the Standard & Poor’s 500 index fell by 0.03%, ending the day at 4026.12 points. The Nasdaq Composite index fell 0.52% to 11,226.36 points, dragged down by Activision Blizzard shares, which fell 4% on news that the Federal Trade Commission could prevent Microsoft from acquiring the games.
Stocks were muted earlier in the week as traders awaited the minutes of the Federal Reserve’s November meeting. The minutes showed that the central bank expects the pace of interest rate hikes to slow going forward, which gave stocks a boost through the end of the week even amid volatile sessions due to low trading volumes.
The minutes stated that “the vast majority of participants considered it appropriate to slow the pace of growth in the foreseeable future”.
A string of solid retail earnings reports pointing to some consumer strength despite fears of economic weakness also sent shares higher.
Concerns over continued lockdowns in China have kept markets in check, as the country ramps up Covid restrictions after seeing the number of cases rise in recent days. Earlier in the week, China reported its first COVID-19 death since May.
European stocks
In Europe, the Stoxx 600 stock index closed flat on Friday, posting gains for the sixth straight week, as hopes of a slower pace of interest rate hikes offset a large sell-off in real estate stocks, while retailers have been hit by fears of a mixed holiday shopping season.
The European index hit its highest level in more than three months earlier in the week.
The European retail index fell 0.6% on Black Friday, which marks the start of the shopping season, on the back of a worsening cost-of-living crisis and a shift in focus to the World Cup soccer. The index is among the worst performing sectors in Europe, down 32% in the year so far.
The housing index fell 0.9%, after leading the market higher in the previous session. UK property stocks led the decline after a survey showed demand for rental homes increased in Britain in October, with prospective first-time buyers postponing purchase deals.
However, the Stoxx 600 index rose 1.7% this week on indications that the Federal Reserve (the central bank of the United States) may slow the pace of interest rate hikes, and after this season came company results better than expected.
Shares of Credit Suisse fell 6.6% to a record low on the heels of announcing plans to raise capital and after a report this week showed meager results.
Rockwool shares rose 4% after Morgan Stanley raised its target price for the Danish company.
Elia Group shares rose 4% after the Belgian grid operator raised its forecast for 2022 and announced a five-year capital spending plan.
(agencies)
