Minor Decline in US Stocks After Historic $9.8 Billion Black Friday Sales

Washington, D.C. – November 28, 2023

Minor Decline in US Stocks After Historic $9.8 Billion Black Friday Sales

Black Friday’s record-breaking online sales of $9.8 billion reverberated through the US stock market on Monday, contributing to a modest decline as investors digested the substantial retail results. The surge in consumer spending during the extended weekend is expected to persist, especially with Cyber Monday deals enticing further online purchases.

According to Adobe Analytics, consumers unleashed a spending frenzy, propelling online sales to an unprecedented $9.8 billion during Black Friday. This marked a notable year-over-year growth of 7.5 percent and set the stage for continued holiday consumerism as Cyber Monday took center stage.

While Black Friday traditionally involved in-store shopping, the landscape has shifted significantly in recent years, with retailers extending their deals to online platforms. MasterCard data revealed a 1.1 percent year-over-year increase in in-store sales, contrasting with an 8.5 percent surge in e-commerce sales. Overall, MasterCard reported a 2.5 percent rise in Black Friday sales, setting the tone for an ongoing surge as Cyber Monday unfolds.

Despite the robust holiday spending, experts like Fundstrat’s Tom Lee downplayed concerns about the Federal Reserve reacting by tightening monetary policy. Lee emphasized that the strong Black Friday numbers should not prompt the Fed to panic or consider immediate interest rate hikes.

As of the 9:30 a.m. opening bell on Monday, major US stock indices reflected a slight downturn:

  • S&P 500: 4,550.80, down 0.19 percent
  • Dow Jones Industrial Average: 35,374.66, down 0.04 percent (15.49 points)
  • Nasdaq Composite: 14,226.69, down 0.17 percent

In a parallel development, the US dollar is on track for its weakest month in 2023, influenced by speculations that the Federal Reserve has concluded its interest rate increases.

Looking ahead, RBC predicted that the S&P 500 would reach a new record high of 5,000 next year, aligning with investors’ optimistic outlook for 2024.

In the commodities market, West Texas Intermediate crude oil experienced a marginal 0.46 percent dip to $75.19 a barrel, while “Brent crude,” the international benchmark, declined 0.47 percent to $80.20 a barrel. Gold, on the other hand, climbed 0.44 percent to $2,011.90 per ounce, and the 10-year US Treasury bond paper yield dropped 2 basis points to 4.44 percent.

Bitcoin exhibited a 1.68 percent decline, settling at $36,831, as the financial markets navigated the aftermath of the unprecedented Black Friday sales surge.

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