US markets closed on a high note Friday, with the S&P 500 and Nasdaq Composite reaching fresh record levels after better-than-expected November jobs data provided a cautiously optimistic outlook for the economy. While the Dow Jones Industrial Average slipped slightly, gains in heavyweight tech stocks like Tesla and Amazon helped propel the Nasdaq to a robust finish. The November labour report showed an unexpected surge in job growth, offsetting concerns over rising unemployment and mixed global economic developments. Investors also took comfort in the increasing likelihood of a Federal Reserve rate cut later this month, fuelling a positive end to a volatile trading week.

Key Takeaways:

  • S&P 500 Hits Record High Amid Rate Cut Expectations: The S&P 500 climbed 0.25% on Friday to close at a record high of 6,090.27, marking its third straight weekly gain with a 0.96% rise over the period. November jobs data came in slightly better than expected but not hot enough to deter expectations of a Federal Reserve rate cut later this month. 
  • Nasdaq Surges to Record as Tech Stocks Lead the Way: The Nasdaq Composite advanced 0.81% to close at 19,859.77 on Friday, setting a fresh record high and capping a robust 3.34% gain for the week. Gains in tech heavyweights Tesla, Meta Platforms, and Amazon drove the index’s performance, underscoring the continued strength of the technology sector. 
  • Dow Jones Declines as Broader Markets Rally: The Dow Jones Industrial Average slipped 123.19 points, or 0.28%, to 44,642.52 on Friday, underperforming its peers as it posted a 0.6% decline for the week. Despite strength in technology stocks, declines in industrial and energy sectors weighed on the index, highlighting the uneven market response to the latest economic data. 
  • November Payrolls Surprise to the Upside: Nonfarm payrolls increased by 227,000 in November, surpassing estimates of 214,000 and rebounding significantly from October’s upwardly revised 36,000 jobs. September’s figure was also revised higher to 255,000. However, the unemployment rate ticked up to 4.2% as labour force participation dipped to 62.5%. The report solidified market expectations for a 25 basis-point rate cut later this month, with traders pricing in an 88% likelihood of the move.
  • European Markets Rise Amid French Political Turmoil: The pan-European Stoxx 600 closed up 0.2%, erasing earlier losses, while France’s CAC 40 surged 1.4% despite the ongoing uncertainty. The FTSE 100 rose 0.26% for the week to 8,308.61, and Germany’s DAX climbed 0.2% to trade near 20,400, marking its seventh consecutive session of gains and approaching a record close. French political developments dominated headlines after prime minister resigned on Thursday but will remain in a caretaker role while Macron selects a successor.
  • Asia-Pacific Markets See Mixed Results: Asia-Pacific markets delivered a varied performance on Friday amid political upheavals in South Korea and France. South Korea’s Kospi dropped 0.90% to 2,441.85, with the won weakening 0.6% against the dollar ahead of an impeachment vote for President Yoon Suk Yeol. Japan’s Nikkei 225 rose 0.30% to 39,395.60, while Australia’s S&P/ASX 200 gained 0.1% to 8,471.10. Meanwhile, China’s CSI 300 fell 0.23%, and Hong Kong’s Hang Seng declined 1.1%, reflecting mixed regional sentiment.
  • Treasury Yields Dip Amid Rate Cut Speculation: Treasury yields edged lower on Friday following the November jobs report. The yield on the 10-year Treasury fell nearly 3 basis points to 4.153%, while the 2-year yield dropped 5 basis points to 4.098%. The report reinforced market expectations for a Federal Reserve rate cut at the upcoming meeting, supported by softening labour market indicators.
  • Oil Prices Decline Despite OPEC+ Cut Extensions: Oil prices continued their downward trend, with Brent crude futures falling 1.35% to settle at $71.12 per barrel and West Texas Intermediate crude dropping 1.61% to $67.20. For the week, Brent and WTI lost over 2% and 1%, respectively, as concerns over a 2025 supply surplus overshadowed OPEC+’s decision to delay production increases and extend output cuts to 2026.

FX Today:

  • EUR/USD Breaks Above Key Moving Averages as Momentum Builds: EUR/USD climbed to 1.0562 on Friday, marking a notable recovery as the pair broke above both the 50-period SMA at 1.0534 and the 100-period SMA at 1.0529. This upward movement signals a shift in sentiment, with bullish momentum targeting the critical resistance level of 1.0600. A decisive move above this could pave the way for 1.0700, while a failure to hold above 1.0530 may lead to renewed bearish pressure, potentially retesting the 1.0500 zone. Traders are closely monitoring the pair’s ability to sustain this breakout.
  • GBP/USD Rises Amid Broad Market Optimism: GBP/USD extended its recovery to trade near 1.2737, bolstered by strong support around the 200-period SMA at 1.2684. The pair reclaimed both the 50-period SMA at 1.2654 and the 100-period SMA at 1.2789, signalling improving sentiment for the British Pound. Immediate resistance lies at 1.2800, with a potential move toward 1.2900 if bullish momentum persists. However, a break below 1.2700 could expose the pair to renewed selling pressure, targeting 1.2680.
  • USD/CAD Approaches Multi-Year Highs as Dollar Strengthens: USD/CAD surged to 1.4151 on Friday, nearing multi-year highs amid strong bullish momentum. The pair remains supported above key moving averages, with the 50-, 100-, and 200-period SMAs clustered at 1.4044, 1.4028, and 1.3963, respectively. Investors reacted to mixed employment data from both the US and Canada, with November payroll gains exceeding expectations in both countries, but unemployment rates ticking higher. Immediate resistance is seen at 1.4200, a critical psychological level. A breakout above this threshold could extend gains toward 1.4300, reinforcing the bullish outlook. However, if the pair faces rejection near this level, a pullback to test support around 1.4050 or the 100-period SMA could occur.
  • Gold Holds Steady Amid Consolidation: Gold prices traded at $2,632 on Friday, consolidating near key levels as the precious metal struggled to break above the 50-period SMA at $2,641. Immediate support lies at $2,635, with a failure to hold above this level exposing gold to further downside toward $2,600. On the upside, a breakout above $2,641 could reignite bullish sentiment, targeting $2,660 and $2,675. Traders remain cautious, awaiting a decisive move to determine the next direction.

Market Movers:

  • Lululemon Soars on Strong Earnings Beat: Lululemon shares surged more than 15% after the athleisure retailer reported fiscal third-quarter results that exceeded Wall Street expectations. The company’s upbeat performance and in-line guidance for the holiday season boosted investor confidence, marking one of the largest single-day gains in the stock this year.
  • Petco Rallies After Narrower-Than-Expected Loss: Petco shares jumped 8% after the company reported a third-quarter loss of just 2 cents per share, significantly better than the expected loss of 4 cents. Revenue also beat analysts’ estimates, reflecting strong consumer demand and operational efficiency improvements.
  • DocuSign Rockets on Robust Revenue Forecast: Shares of DocuSign climbed over 27% after the company projected fourth-quarter revenue between $758 million and $762 million, surpassing the consensus forecast of $756 million. DocuSign’s third-quarter adjusted earnings and revenue also outperformed, solidifying its position as a standout in the tech sector.
  • AMC Entertainment Slumps on Share Sale Plan: AMC shares fell 9% after the company announced plans to sell up to 50 million shares. The news came a day after a social media post from “Roaring Kitty” fuelled a temporary spike in AMC’s stock price, highlighting the volatility surrounding meme stocks.
  • Asana Skyrockets on Smaller-Than-Expected Loss: Asana shares soared 43.5% after reporting a third-quarter loss of 2 cents per share, far narrower than analysts’ expectations of a 7-cent loss. Revenue came in at $184 million, surpassing the forecast of $181 million, as the work management software company continued to expand its customer base.
  • Rubrik Rises on Earnings Beat: Rubrik shares surged 20.4% after posting a third-quarter loss of 21 cents per share, beating analysts’ estimates of a 40-cent loss. Revenue also exceeded expectations, coming in at $236 million versus the $218 million forecast. 
  • Hewlett Packard Enterprise Gains on Positive Results: Hewlett Packard Enterprise shares advanced 10.6% after reporting fiscal fourth-quarter adjusted earnings of 58 cents per share, exceeding forecasts of 56 cents. Revenue came in at $8.46 billion, beating the $8.26 billion consensus estimate and signalling strong performance in its enterprise solutions segment.
  1. Energy Stocks Decline as Oil Prices Drop: Oil stocks faced pressure as crude prices fell for the third straight day. Diamondback Energy dropped 3.4%, Halliburton fell 4.1%, and APA declined 1.9%. Concerns about a potential crude surplus in 2025 weighed heavily on the sector, despite OPEC+’s decision to delay production increases and extend output cuts.

As the trading week concluded, the S&P 500 and Nasdaq surged to record highs, driven by robust payroll data and strong performances in tech stocks like Tesla and Amazon. Meanwhile, the Dow lagged behind, reflecting mixed sectoral performance and investor caution. European markets gained despite political turmoil in France, while Asia-Pacific indices delivered a mixed bag, with South Korea’s Kospi hit hard by domestic unrest. Treasury yields dipped as expectations of a Federal Reserve rate cut solidified, while oil prices declined further, weighed down by concerns of a future supply glut despite OPEC+ cut extensions. With markets reacting to a blend of encouraging economic data and persistent uncertainties, investors now turn their attention to the Fed’s upcoming policy decision, which could set the tone for the remainder of the year.