The S&P 500 and the Nasdaq Composite reached all-time highs on Friday following positive economic data showing that the economy added more jobs than expected in November. The tech-heavy Nasdaq saw an increase of 0.8%, closing at 19,859.8, while the S&P 500 rose by 0.3% to finish at 6,090.3. Conversely, the Dow Jones Industrial Average recorded a decline of 0.3%, ending the day at 44,642.5.
Among sectors, consumer discretionary led the gains, while energy experienced the largest drop. Over the past week, the Nasdaq surged by 3.3%, whereas the S&P 500 saw a growth of 1%. The Dow, however, fell by 0.6%. In terms of economic indicators, total nonfarm payrolls in the United States increased by 227,000 last month, surpassing the consensus forecast of 220,000, as reported by the Bureau of Labor Statistics.
The unemployment rate rose slightly to 4.2% from October's 4.1%, aligning with market expectations. Furthermore, experts anticipate the Federal Reserve to lower interest rates by 25 basis points on December 18, though it is expected that policymakers will adopt a more cautious approach in 2025 and might forgo rate cuts in January, as noted by Oxford Economics. Cleveland Fed President Beth Hammack indicated that the Federal Open Market Committee may be at or near a point where it is prudent to slow down the pace of monetary policy easing.
“Moving slowly will allow us to calibrate policy to the appropriately restrictive level over time given the underlying strength in the economy,” Hammack stated. US consumer sentiment hit its highest peak in seven months, while year-ahead inflation expectations reached a six-month high, according to preliminary December results from the University of Michigan's Surveys of Consumers. In the bond market, the US two-year yield fell by 4.8 basis points to 4.1% on Friday, while the 10-year yield eased 2.9 basis points to 4.15%. Turning to stock news, shares of Lululemon Athletica ($LULU) soared nearly 16%, making it the top performer on both the S&P 500 and the Nasdaq.
The athletic apparel and footwear retailer reported stronger-than-expected fiscal Q3 results on Thursday, driven by robust momentum in international markets. Ulta Beauty ($ULTA) also featured prominently among the S&P 500 gainers on Friday, rising 9% following a successful fiscal Q3 performance. In contrast, UnitedHealth Group ($UNH) saw its shares decline by 5.1%, marking the steepest drop on both the Dow and the S&P 500.
Cooper ($COO) followed closely as the second-worst performer on the S&P 500 with a decline of 4.4% after its fiscal Q4 sales fell short of Wall Street's expectations. Additionally, West Texas Intermediate crude oil prices fell by 1.6%, settling at $67.20 a barrel. A note from D.A. Davidson highlighted that oil prices decreased due to concerns over weak demand, exacerbated by the decision of the Organization of the Petroleum Exporting Countries and its allies to delay planned supply increases and extend significant output cuts through the end of 2026. In the commodities market, gold prices edged up by 0.2% to $2,654.70 per troy ounce, while silver saw a slight decline of 0.1%, settling at $31.51 per ounce..