Stocks notched fresh records on Friday as year-end optimism continued to drive the rally.
The Dow Jones Industrial Average were up about 66 points, while the S&P 500 and Nasdaq Composite traded 0.2% and 0.3% higher, respectively. Big tech Amazon and Apple led the market gains, both rising more than 1%. The major averages all hit new all-time highs. Trading volumes are expected to remain subdued.
The tech-heavy Nasdaq topped the 9,000 mark for the first time Thursday, lifted by a jump in Amazon shares on a record holiday shopping season. The Nasdaq has risen for 11 straight days, the longest winning streaking since July 2009.
The S&P 500, up already 29.4% in 2019, is inches away from reaching historic proportions. The benchmark will post its best year since 1997 with an annual gain of more than 29.6%.
“News flow remains relatively quiet, but stocks are extending their melt-up price action into the final days of 2019,” Adam Crisafulli, founder of Vital Knowledge, said in a note on Friday.
Investors have been embracing riskier assets ever since the U.S. and China announced they have reached a phase one trade agreement earlier this month. The two sides are in the middle of translating and formalizing the deal. President Donald Trump said Tuesday there will ultimately be a signing ceremony with Chinese leader Xi Jinping, adding a quicker signing will happen soon.
Data overnight showed a solid rebound for industrial profits in China, further boosting sentiment.
“During what has been a very, very quiet week so far this week, the stock market has continued to rally in a slow and steady manner,” Matthew Maley, chief market strategist at Miller Tabak, said in a note Friday. “Many important stock indexes breaking out…but they’re also getting overbought.”
Friday marks day three of the so-called Santa Claus rally period, which is historically beneficial for stocks. Since 1950, the S&P 500 has rallied an average of 1.3% during the final five trading days of the year and the first two sessions of the new year, according to the Stock Trader’s Almanac.
No economic data and earnings are scheduled for Friday.
— CNBC’s Spriha Srivastava contributed reporting.
