Major U.S. stock indexes moved to new record highs on Black Friday, supported by gains in consumer staple stocks. However, the growth in European shares and a bounce back in U.S. Treasury yields provoked traders to sell the Dollar exchange rate.
The small cap Russell 2000 surged to new record levels. The S&P 500 consumer staples index gained 0.7%, and the consumer discretionary sector surged 0.2% on Black Friday. European stock markets posted third straight day of gains, even though commodities shares declined following a tumble in crude oil prices. Doubt over whether OPEC producers will concur to cut output weighed on oil prices.
Over the last few sessions, all the three key U.S. indexes surged to new record levels and closed the session at multi-years high.
Those additions came as financial specialists see U.S. President-elect Donald Trump’s guarantees of tax reductions, higher spending on foundation and less direction as gainful to specific businesses, including banking, industrials and medicinal services.
“Trump’s securities exchange honeymoon proceeds as the lists push higher at the beginning of today, and the concentration now moves to holiday deals,” said Peter Cardillo, boss market business analyst at First Standard Financial in New York.
The Dow Jones industrial average surged 51.19 points to 19,134.37, while the S&P 500 gained 5.5 points, to 2,210.22. The Nasdaq Composite moved higher by 0.17% to 5,389.68.
While positive for stocks, Trump’s amazing win has sent U.S. Treasury yields higher and prices lower as financial specialists wager his pro development and inflationary approaches will disintegrate the estimation of U.S. bonds.
U.S. Treasuries were last enduring following two-year yields hit a 6 1/2-year high of 1.1700 percent overnight as speculators assessed how much further the selloff needed to run.
The Dollar index declined 0.3% to 101.390 following investor’s strategy of taking advantage of the pullback in U.S. bond yields. Gold prices declined to the lowest level of 9-1/2 month of $1,171.2100 an ounce, thanks to U.S. interest rate expectations.