US stocks advanced on Friday, extending their late-month rebound even as November closed on a mixed note for the major indices. The Nasdaq Composite rose 0.65% to 23,365.69, posting a fifth consecutive advance while still recording a monthly decline. The S&P 500 gained 0.54% to 6,849.09, and the Dow Jones Industrial Average climbed 289 points, or 0.61%, to 47,716.42. Trading volumes were lighter than usual during the shortened post-Thanksgiving session.
Tech stocks remained in focus as investors reassessed the sector’s outlook following a volatile month. The Nasdaq ended November almost 2% lower, snapping a seven-month winning streak. The S&P 500 and Dow, however, managed slight monthly rises, extending their run to seven consecutive winning months. For the week, the Dow added more than 3%, the S&P 500 rose nearly 4%, and the Nasdaq advanced more than 4%.
Rate-cut expectations support market sentiment
Investor sentiment was buoyed by rising confidence that the Federal Reserve will deliver another quarter-point rate cut in December. Market pricing suggests an 80% to 85% probability of a move that would mark the Fed’s third reduction in as many meetings, following cuts in September and October. Recent comments from New York Fed President John Williams reinforced expectations that the easing cycle may continue into early next year.
Still, uncertainty around the longer-term profitability of AI-exposed companies contributed to the month’s earlier weakness. Profit-taking across the sector dragged on broader indices before this week’s recovery.
Local outlook
Australian shares are set for a modest rise at the open, with SPI 200 futures up 4 points, or 0.1%, after the local market fell 3% in November. It was the weakest month since March, driven by concerns that enthusiasm around AI and technology stocks had pushed prices too high, prompting fund managers to trim exposure.
The focus this week shifts to Wednesday’s third-quarter GDP figures. Analysts expect a quarterly expansion of 0.7% and an annual gain of 2.3%. A result near consensus would reinforce the view that the Reserve Bank is unlikely to cut rates and may even consider another move higher, given the resilience of domestic demand.
Westpac forecasts an above-consensus 0.8% rise, supported by stronger household consumption.
