The S&P 500 and the Nasdaq composite broke closing records on Black Friday after a shortened day of trading, with other indices also advancing.
The Nasdaq continued its record-smashing growth, notching 0.9% growth for the day and breaking a high from earlier in November. Since January, the Nasdaq has gained more than 40%, according to Business Insider. The index has gained more than 60% from its March lows after uncertainty surrounding the coronavirus pandemic caused indices to shed roughly 20%.
Posting slightly less dramatic gains, the S&P 500’s 0.2% gain Friday bumped the index over a record close it also set earlier this month. The index has risen more than 10% since January. The latest growth follows an announcement from the index that Tesla will join the S&P 500 prior to trading on Dec. 21. Tesla’s stocks have also jumped since the announcement.
Both indices also posted the strongest single-month gains since the April surge out of March’s depths — the Nasdaq and the S&P jumped 12% and 11% respectively since April.
The Dow Jones Industrial Average also gained 38 points before closing Friday but failed to surpass the 30,000 mark it reached earlier this week after General Services Administrator Emily Murphy announced that President-elect Joe Biden would be allowed to begin the presidential transition process.
While markets continue to edge into new highs, experts are wary that continued surges in coronavirus cases across the country and a stalling economic recovery might temper such extraordinary gains and create a “high ledge” for markets to tumble off in the event that things take a turn for the worse, according to the Wall Street Journal.
“There’s still a lot of cases and restrictions in the U.S.: a lot of activity is going to stall again,” said Lombard Odier chief economist Samy Chaar. “This will have an impact potentially on the next job market report.”
November’s labor statistics will be released Dec. 4.
