The Dow Jones Industrial Average rose 426 points to a record close on Friday, with all three major indexes posting weekly gains as investors took comfort in data showing solid economic activity in the world's largest economy.
The Dow Jones Industrial Average ended up 1% at 44,296.51, a day after surging more than 450 points.
The S&P 500 rose 0.4% and the Nasdaq rose 0.2%.
For the week, the S&P 500 index rose 1.68%, the Nasdaq index rose 1.73%, and the Dow index rose 1.96%.
A measure of business activity rose to a 31-month high in November, boosted by expectations for lower interest rates and more pro-business policies from President-elect Donald Trump's administration next year.
The Russell 2000 index of domestically focused small-cap stocks rose 1.8%, outperforming the large-cap index. The index rose 4.3% for the week.
Meanwhile, Alphabet fell 1.7%, following a 4% drop on Thursday, as the Justice Department argued to a judge that the company has a monopoly on online search.
AI powerhouse Nvidia also fell 3.2% in choppy trading after releasing quarterly forecasts on Wednesday.
“I was expecting this leadership change from technology to every other area. I think we may be in the middle of that change. Small-cap stocks are doing much better. , value is also moving better,” said Mark Hackett, head of investment research at Nationwide.
Expectations for the Fed's policy decision in December have recently oscillated between a pause and a rate cut as investors weigh the potential impact of President Trump's plan on price pressures.
According to CME Group, there is a 59.6% chance that the central bank will reduce borrowing costs by 25 basis points. fedwatch tool.
Geopolitics took center stage this week as investors monitored a missile exchange between Ukraine and Russia after Russia lowered its standards for nuclear retaliation.
The market is also looking forward to President Trump's nomination for Treasury Secretary.
“The fact that we are on a steady upswing is very encouraging and shows that investors are acting emotionally given the amount of uncertainty we face. '', Hackett said.
In corporate news, Gap soared 13% after Old Navy's parent company raised its annual sales forecast and said the holiday season was off to a “strong start.”
Intuit fell 5.7% after the TurboTax parent company on Thursday expected second-quarter sales and profits to fall below Wall Street expectations.
