[New York Stock Market] Quiet Holiday, Mixed Trends Watching Black Friday 'Consumption'... Nasdaq Down 0.52%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Major indices of the U.S. New York stock market closed mixed on Friday, the 25th (local time), marking Black Friday.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,347.03, up 152.97 points (0.45%) from the previous session. Meanwhile, the large-cap focused S&P 500 index closed down 1.14 points (0.03%) at 4,026.12, and the tech-heavy Nasdaq index ended the day at 11,226.36, down 58.96 points (0.52%).

On this day following Thanksgiving, the market closed early at 1 p.m. Eastern Time. Due to the holiday week and shortened trading hours, the market was relatively quiet. On a weekly basis, all three major indices ended the week on an upward trend. The Dow rose 1.78%, the S&P 500 increased 1.53%, and the Nasdaq gained 0.72%, closing the week positively.

Investors focused on consumer trends amid concerns about economic slowdown, as the largest U.S. shopping event, Black Friday, took place.

According to the National Retail Federation (NRF), an estimated 166.3 million shoppers are expected to shop from this year’s Black Friday through Cyber Monday next week. This is the highest level since 2017. Some previously released earnings reports from retail stocks exceeded expectations, bolstering this optimism. However, earnings warnings are also pouring in, with forecasts that consumption may not keep pace due to high inflation. According to S&P Global Market Intelligence, holiday sales are expected to increase by 4.5% year-over-year, slowing down compared to last year’s 12.6% growth.

Oliver Chen, Chief Analyst at Cowen, pointed out, "Inflation is definitely hurting middle-class and low-income consumers." He added that although recent retail sales data and corporate earnings present a mixed picture, there are positive aspects from an investor’s perspective. Craig Erlam, Senior Market Analyst at OANDA, commented, "(Starting with Black Friday) as the holiday season begins, we will get early signals on how much households can spend amid the cost-of-living crisis."

Concerns over COVID-19 lockdowns in China continue to raise market caution. Earlier this week, China reported its first COVID-19 death since May. New confirmed cases surpassed 30,000 the previous day, prompting stricter quarantine measures. This is the first time daily cases have exceeded 30,000 since the COVID-19 outbreak in December 2019.

Additionally, investors are awaiting next week’s Federal Reserve officials’ remarks and inflation data.

Looking at individual stocks, Activision Blizzard closed down 4.07% following a Politico report that the Federal Trade Commission (FTC) may file an antitrust lawsuit against Microsoft’s (MS) acquisition of Activision. MS shares slightly declined from the previous day, remaining near flat. Apple fell 1.96% amid concerns that production might decrease during the holiday season. Manchester United, which has been on a rising streak since news of a potential sale, closed up 12.82% on the day.

In the New York bond market, U.S. Treasury yields slightly declined as the Fed’s November meeting minutes suggested a possible easing of rate hikes soon. The 10-year Treasury yield fell to around 3.692%. The 2-year note, sensitive to monetary policy, traded near 4.457%. The bond market also closed early at 2 p.m. on this day.

This content was produced with the assistance of AI translation services.