U.S. stocks market is wrapping up their best week in a year, holding steady on Friday after a week of significant gains. As of midday, the S&P 500 was up 0.3%, on track for its strongest weekly performance since November 2023. The Dow Jones Industrial Average saw a boost of 230 points, or 0.5%, while the Nasdaq composite remained largely unchanged.
This relatively quiet Friday trading follows a strong week where indexes hit new highs, driven by two key events: Donald Trump’s presidential win and the Federal Reserve’s decision to cut interest rates again, aiming to support the economy.
Strong performers and setbacks
Axon Enterprise, a company specializing in Tasers and body cameras for law enforcement, led the charge with a 21.5% surge. The company reported better-than-expected profits for the last quarter and raised its revenue forecast for the year to $2.07 billion, signaling a 32% year-over-year growth. Expedia Group also saw a 6.2% rise after surpassing profit expectations, with a 9% increase in booked room nights compared to last year.
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On the flip side, companies like Airbnb and Pinterest struggled. Airbnb’s stock dropped by 8.3% after posting a mixed earnings report for Q3 and issuing disappointing fourth-quarter guidance. Pinterest saw a steep decline of 16.7%, as its revenue forecast came in lower than investor expectations, despite exceeding sales and profit targets for the quarter.
Bond yields and consumer confidence
The bond market showed signs of easing, with the 10-year Treasury yield falling to 4.31% from 4.33% the previous day, though it remains well above its September lows. Treasury yields have been climbing due to the resilience of the U.S. economy, prompting speculation that the Fed‘s rate cuts will continue, helping to maintain job growth and push inflation closer to its 2% target.
Consumer sentiment continues to improve, with the University of Michigan’s latest survey showing a rise in confidence for the fourth consecutive month. This marks the highest level of consumer sentiment in six months, while inflation expectations for the year ahead have dropped to their lowest since 2020.
Global market reactions
While U.S. markets performed well, international stocks reflected more uncertainty. European indexes were mostly lower, heading for a losing week. In Asia, markets in Hong Kong and Shanghai declined as investors awaited economic measures from Beijing to address the slowing Chinese economy. Chinese officials revealed a 6 trillion yuan ($839 billion) plan to help local governments manage the pandemic-induced debt and struggling property sector.
Global market have been volatile, as investors adjust to Trump’s policy rhetoric, particularly regarding tariffs. His proposals have stoked concerns about global trade disruptions, but stocks tied to his economic agenda, like Trump Media & Technology Group, saw strong gains. The company’s shares jumped 11.6% on Thursday and are expected to close the week slightly higher.
