Dow and S&P 500 Shatter Records Amid AI Investment Surge and Economic Optimism

U.S. stocks closed higher on Friday with the Dow Jones Industrial Average and the S&P 500 hitting record highs. This marks the end of a strong November, fueled by optimism over the U.S. economy's robust growth and the excitement surrounding AI investments. Investors seemed to weigh these positives against concerns about European political instability and economic slowdown. The trading session ended three hours early due to the day following Thanksgiving.

The Dow gained 188.59 points, or 0.42%, closing at 44,910.65. The Nasdaq rose 157.69 points, or 0.83%, to 19,218.17, and the S&P 500 climbed 33.64 points, or 0.56%, ending at 6,032.38. Notably, the Dow hit an intraday peak of 45,071.28 points, setting a new historical high.

Within the sector performances, semiconductor equipment stocks exhibited impressive gains, with Lam Research up 3.23%, Applied Materials rising by 1.98%, and KLA Corp advancing 2.36%. Chinese firms also showed strong performances, with BOSS Zhipin gaining 7.31%. Similarly, Bilibili saw a rise of 1.59% amid reports of collaborations with Taobao for live commerce streaming.

The S&P 500 recorded a monthly increase of 5.73% in November, making it the strongest month since last November. This rally was supported by expectations surrounding President Trump's economic policies, which include tax cuts, deregulation, and import tariffs. Such policies have led investors to forecast that U.S. markets will continue to outpace other regions.

According to Christopher Rossbach, Chief Investment Officer at J.Stern & Co, "The U.S. economy remains resilient with strong employment, easing inflation, and declining interest rates." He anticipates further gains in AI-related stocks, particularly dominated by chip manufacturers like NVIDIA.

As the month comes to a close, the U.S. retail sector is bracing itself for the holiday shopping season. Black Friday expectations remain cautious, with retail firms hopeful of strong consumer turnout despite having fewer shopping days between Thanksgiving and Christmas compared to last year.