Stocks drifted to a mixed finish Friday after a half-day trading session capped a holiday shortened week that left the major indexes with their fourth straight winning week.
The S&P 500 inched up 0.1% after wavering between small gains and losses much of the day. The Dow Jones Industrial Average added 0.3% and the Nasdaq composite slipped 0.1%.
The New York Stock Exchange is seen June 14, 2022, in New York. Trading was muted as markets reopened following the Thanksgiving holiday on Thursday.
All told, the S&P 500 added 2.72 points to 4,559.34. The Dow rose 117.12 points to 35,390.15, and the Nasdaq fell 15 points to 14,250.85.
Trading was muted as markets reopened following the Thanksgiving holiday on Thursday. Gains in health care, financial, energy and other sectors helped temper losses in technology and communication services stocks.
The major stock indexes’ latest weekly gains reflect a turnaround in the market’s sentiment in November following a three-month slide. Traders have grown cautiously optimistic that inflation has cooled enough for the Federal Reserve to finally be done with its market-crunching hikes to interest rates.
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Forecasts for a potential recession have been pushed further out into 2024 while also being softened. The rate of inflation continues to ease, consumer spending remains solid and the economy is generally humming along. That has encouraged hopes, and bets, that the Federal Reserve might even consider cutting rates.
Fed officials, though, have said the outlook for the economy remains uncertain and they’ll make upcoming decisions on rates based on incoming reports. The Fed will get another big update next week when the government releases its October report for a key inflation measure tracked by the central bank.
In the bond market, Treasury yields broadly rose Friday. The yield on the 10-year Treasury, which influences interest rates on mortgages and other loans, rose to 4.47% from 4.41% late Wednesday. The yield on the 2-year Treasury rose to 4.95% from 4.90% late Wednesday.
Oil prices, a key driver of inflation, continued to ease Friday, with U.S. crude sliding 2%. Oil prices have plunged in recent weeks amid worries about a mismatch between too much crude supply and too little demand.
Investors are watching to see how U.S. retailers will fare as the holiday shopping season kicks off with Black Friday, given growing concerns that spending may slow under pressure from dwindling savings, rising credit card debt and inflation.
The latest quarterly results from a string of retailers from Walmart to Best Buy to Saks Fifth Avenue suggested a weakening of consumer appetites for spending even as inflation eases and employment remains robust.
Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead
Real estate
Real estate has been a popular asset class as of late — perhaps because it’s a well-known hedge against inflation.
As the price of raw materials and labor goes up, new properties are more expensive to build. And that drives up the price of existing real estate.
Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.
In the Bank of America survey, 28% of younger people said real estate presents great growth potential; 31% of the older group held the same opinion.
But you don’t need to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can get you started on becoming a real estate mogul.
Cryptocurrency
Once considered a niche asset, cryptocurrency has now entered the mainstream. A study from the CFA Institute earlier this year showed that 94% of state and government pension plans have invested in cryptocurrencies.
Of course, many investors learned about cryptocurrencies’ volatility the hard way through this year’s massive pullback. But some wealthy millennials still believe in the asset class.
In the Bank of America survey, 29% of younger people said crypto offers great opportunities for growth, while only 7% of the older group agreed.
Unsurprisingly, younger folks also have a lot more exposure to crypto (average allocation of 15% of their portfolio) than the older generation (average allocation of 2% of their portfolio).
It’s easy to get in on the action — there are plenty of platforms that allow you to invest in crypto. Just be aware of fees: many exchanges charge up to 4% in commission fees just to buy and sell crypto. But some investing apps charge 0%.
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