Traders on the floor of the NYSE, April 14, 2022.
The S&P 500 rose on Friday as it remained on course for another weekly gain amid a red-hot November rally.
The major averages are all on pace for their third straight positive week. The S&P 500 and the Nasdaq are up more than 2.3% through Thursday’s close, while the Dow is on pace for a 2% rise. This would be the first three-week win streak for the Dow and S&P 500 since July, and the first since June for the Nasdaq.
Those gains were sparked by tame U.S. inflation data that gave hope to investors that the worst of inflation — as well as the Federal Reserve’s tough stance on rate policy — may be in the rearview mirror.
Stocks have been on a tear this month. In November, the S&P 500 is up 7.7%, while the Dow has a 5.8% gain. The Nasdaq has leapt 10%.
“I think the story for the rest this year isn’t are we going to finish with a bit of a rally, because it does appear likely that we’re going to finish with a bit of a rally,” said Scott Ladner, chief investment officer at Horizon Investments.
Instead, Ladner believes the debate will center around the next market leader. “Is it going to be small caps and emerging [markets], kind of like the losers of 2023? Are they going to be the things that lead? Or are we going to get a continuation of the mega-cap tech rally that we’ve had basically all year long?”
Gap shares leapt 29% after the company posted better-than-expected results for the third quarter. Electric vehicle charging network ChargePoint slid 35% after announcing a shake-up in its C-suite and cutting its forecast for third-quarter revenue.