US stocks saw modest gains on Friday as the week and month came to a close. The Dow Jones Industrial Average led the market higher, rising by about 0.5% in mid-morning trading. The Nasdaq Composite and S&P 500 also posted gains of around 0.4%.
Earlier in the day, the Chicago Mercantile Exchange experienced a technical glitch that disrupted trading in futures and options markets, including US Treasurys and crude oil. The issue was resolved by 8:30 a.m. ET.
Traders are betting on a potential interest rate cut by the Federal Reserve at its upcoming meeting in December, leading to a rebound in the stock market this week. Tech stocks, in particular, benefited from renewed optimism in the AI sector.
Despite the recent gains, the major Wall Street indexes are facing a losing month overall. The decline is attributed to a cooling off in mega-cap tech stocks, prompting investors to reassess the profitability of AI-driven businesses.
As of midday trading on Friday, the S&P 500 was relatively unchanged for November after a six-month winning streak. The Nasdaq was on track to snap a seven-month run of gains with losses of nearly 2%, while the Dow was flat for the month.
Analysts are beginning to release their predictions for the stock market in the year ahead. Deutsche Bank has set a target of 8,000 for the S&P 500 by the end of 2026, while HSBC and JPMorgan are more conservative with forecasts around the 7,500 mark.
The markets closed early on Friday at 1 p.m. ET, with no major earnings or economic data releases scheduled for the day. Overall, it was a relatively quiet end to the holiday-shortened week.
