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Consumer sentiment rises in November
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Major U.S. indexes notch weekly gains
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China ADRs fall after stimulus measures disappoint
(Updates to market close)
By Chuck Mikolajczak
NEW YORK, Nov 8 (Reuters) - The S&P 500 briefly
surpassed the 6,000 mark and closed with its biggest weekly
percentage gain in a year, as Donald Trump's election victory
and a possible Republican Party sweep in Congress fueled
expectations for favorable business policies.
Also supporting stocks this week was a widely expected
interest rate cut of 25 basis points by the Federal Reserve on
Thursday.
The S&P 500 and the Dow Industrials were on track for
their best weekly percentage jump since early November 2023,
with the Nasdaq on pace for its best in two months and
second-best week of 2024.
Investors were also monitoring for a likely "Red Sweep" as
Republicans were set to keep their narrow lead in the House of
Representatives after winning control of the Senate. That would
make it easier for Trump to enact his legislative plans.
Expectations for lower corporate taxes and deregulation
under Trump have helped push the benchmark S&P index and the Dow
to intraday record highs for the three straight sessions. The
S&P is on track to secure its 50th record close of the year.
"It is a psychologically important number but with all the
developments this week, I don't think it's terribly important if
we close at 6,005 or if we close at 5,995. The market is way up
this week," said Mike Dickson, head of research and quantitative
strategies at Horizon Investments in Charlotte, North Carolina.
"There's been so many things, so much good news for the
market this week as evidenced by the prices. All of that far
outweighs whether or not we're on the right or left hand side of
that 6,000 number when the close happens."
According to preliminary data, the S&P 500
gained 23.52 points, or 0.39%, to end at 5,996.62 points,
while the Nasdaq Composite gained 17.20 points, or
0.09%, to 19,286.66. The Dow Jones Industrial Average
rose 269.39 points, or 0.62%, to 43,998.73.
The Dow rose above 44,000 for the first time, in part due to
a late boost from Salesforce ( CRM ), after Bloomberg reported
the software company will hire 1,000 employees to promote its
artificial intelligence Agentforce Tool.
The S&P 500 and Nasdaq secured their fourth straight session
of gains.
Rate-sensitive sectors such as real estate and
utilities were the best performing of the 11 major S&P
500 groups as Treasury yields fell for a second straight session
after a sharp jump following the election.
But the benchmark 10-year U.S. Treasury note yield
remained near a four-month high, and markets have
scaled back expectations for the pace of Fed rate cuts in 2025
as concerns remain over the incoming administration's proposed
tariffs which are likely to rekindle inflation.
The small cap Russell 2000 also advanced, registering
its biggest weekly percentage gain in 4-1/2 years, as
domestically concentrated stocks are seen as likely to benefit
from easier regulations, lower taxes and less exposure to import
tariffs.
U.S. consumer sentiment rose to a seven-month high in early
November, with a measure of households' expectations for the
future climbing to the highest in more than three years, led by
brightening outlooks among Republicans, the University of
Michigan's Consumer Sentiment Index showed.
Airbnb ( ABNB ) shares dropped after the homestay company
missed third-quarter profit estimates, while social media
company Pinterest ( PINS ) slumped after a disappointing revenue
forecast.
U.S.-listings of Chinese companies lost ground as the
government's latest fiscal support measures once again failed to
impress investors. JD.com ( JD ) and Alibaba ( BABA ) both
declined sharply.