US stocks edged higher on Friday ahead of a shortened trading session, with the focus on incoming president Donald Trump’s tariff agenda and the Black Friday shopping rush crucial to retailers.
Futures on the Dow Jones Industrial Average (YM=F) moved up roughly 0.3%, while S&P 500 futures (ES=F) added 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also rose roughly 0.2%, after all three indexes pulled back from record highs on Wednesday.
The last trading day in November sees the major gauges on track for monthly wins, despite a pullback in the rally spurred by Trump’s decisive election victory. The S&P 500 (^GSPC) is holding near its latest record high and will score its best month since February if an indicated 5% gain holds.
But a quiet session on Wall Street is in the cards as markets reopen after the Thanksgiving break, with Friday’s trading set to end early at 1 p.m. ET.
Investors continued to weigh the likely fallout — and impact of inflation — from the president-elect’s vow to impose hefty new tariffs on top US trading partners Mexico, Canada, and China. Hopes for a softening in that plan got a boost as Mexican President Claudia Sheinbaum said she’s confident that a tariff war can be averted after a phone call with Trump.
Elsewhere on the trade front, optimism grew that looming US curbs on China chips will be less tough than expected. ASML (ASML) and other European chip-related stocks rose after Bloomberg reported Thursday that the Biden administration is weighing fresh restrictions that would stop short of earlier proposals.
Meanwhile, investors are keeping a watchful eye on Black Friday sales, the unofficial kickoff of the holiday shopping season. Eyes are on how successful retailers will be at energizing Americans to buy in stores, given financially squeezed consumers have turned cautious on discretionary spending.
Analysts are predicting a solid season, though not as robust as last year. Shares of Target (TGT), Walmart (WMT), and Best Buy (BBY) edged into the green in premarket trading.
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