The S&P 500 briefly surpassed the 6,000 mark and closed with its biggest weekly percentage gain in a year, as Donald Trump's election victory and a possible Republican Party sweep in Congress fueled expectations for favorable business policies.
Market Snapshot
The Dow Jones Industrial Average rose 259.65 points, or 0.59%, to 43,988.99; the S&P 500 rose 22.44 points, or 0.38%, to 5,995.54 and the Nasdaq Composite rose 17.32 points, or 0.09%, to 19.286.78.
Market Movers
Tesla gained 8.2%. Shares of the electric-vehicle maker have risen somewhat surprisingly this week since Trump was elected president (the president-elect isn't a fan of EVs). But Wall Street has been growing more optimistic about Elon Musk's company, pushing Tesla's market value back above $1 trillion.
Upstart Holdings skyrocketed 46% after the artificial-intelligence lending platform's earnings were higher than expected and the company issued an upbeat forecast.
Arista Networks fell 7.1% after the cloud-networking company reported third-quarter earnings and revenue that topped analysts' estimates and announced a 4-for-1 stock split. Arista also said it expected fourth-quarter revenue of $1.85 billion to $1.9 billion compared with estimates of $1.81 billion.
Airbnb reported third-quarter revenue up 10% from a year earlier to $3.73 billion, with the short-term stay company saying the gains were "primarily driven by the growth of nights stayed on the platform." Gross booking value in the period rose 10% to $20.1 billion, with nights and experiences booked rising 8%. Airbnb said it was seeing "strong demand trends" in the fourth quarter. The stock dropped 8.7%.
Trump Media & Technology Group rose 15% after sliding 23% on Thursday, the stock's largest percentage daily decrease on record since merging with special-purpose acquisition company Digital World Acquisition in March, according to Dow Jones Market Data. The stock has had a volatile week after Donald Trump, who is majority shareholder of Trump Media, won the U.S. presidential election.
Nvidia finished down 0.8% but the chip maker's stock set an all-time high earlier in the session of $149.77 after making its debut Friday, along with Sherwin-Williams, in the Dow Jones Industrial Average.
Cloudflare, the cybersecurity and software company, dipped 4.6% after issuing fourth-quarter revenue guidance that missed Wall Street estimates. The company said it sees revenue in the period of $451 million to $452 million, below forecasts of $453.4 million.
Doximity rose 34% after the online platform for medical professionals reported fiscal second-quarter earnings and revenue that beat Wall Street estimates.
Pinterest, the social-media platform, reported third-quarter earnings and revenue that beat expectations and said it now has 537 million monthly active users, up 11% from a year earlier. The stock plummeted 14%, however, after Pinterest said it expects fourth-quarter operating expenses of between $495 million and $510 million, up 11% to 14% from a year earlier, as it ramps up spending on artificial intelligence.
Online travel website Expedia reported third-quarter adjusted earnings of $6.13 a share, higher than estimates of $6.05, but revenue of $4.06 billion missed forecasts of $4.11 billion. Total gross bookings in the quarter rose 7% to $27.5 billion. The company also said Chief Financial Officer Julie Whalen will be stepping down in February. Shares were up 3.8%.
Toast rose 14.7% after the digital-payment platform for restaurants reported third-quarter revenue that was better than expected. The company's annualized run-rate rose 28% to $1.6 billion, higher than consensus of $1.5 billion.
Market News
China Unveils $1.4 Trillion Debt Swap
China gave indebted local governments a 10 trillion yuan ($1.4 trillion) lifeline. Officials unveiled details of a program to refinance “hidden” local debt onto public balance sheets at a press briefing in Beijing on Friday. Funds for that program — telegraphed last month but without a price tag or timeframe — will be provided through 2028, they said, after the move was authorized by the nation’s top lawmaking body.
ASML Hit with Global IT Outage That Was Resolved
Computer chip equipment maker ASML had a global IT systems outage on Friday, which has been resolved.
"All systems are fully recovered," the company said, adding that the cause of the outage is currently being investigated.
The outage, which caused some employees to work remotely, was first reported by Dutch newspaper Eindhovens Dagblad.