Dollar Hits the Longest Winning Streak This Year – US Market Wrap

Beneficiaries of the incoming administration’s relaxed regulations and business-friendly stance made strong showings this week. Stocks rose as Bitcoin defied doubters, and the dollar extended its gains into the eighth week, the longest run of the year.

Blue chips and small caps led Friday’s equities rally, while this year’s big tech winners struggled to gain traction. The S&P 500 rose 0.3%, while an equal-weighted version of the gauge rose 0.8%, on track for an all-time closing high.

The Dow Jones Industrial Average rose 1%, while the Russell 2000 rose 1.8% to its highest level in more than two years. The small-cap index rose 4.5% this week, while the largest technology stocks, such as Nvidia, Alphabet, and Facebook’s parent company Meta Platforms, lagged.

According to Bank of America strategists, the Nasdaq 100, which has rallied more than 4% this month, is approaching a level versus the S&P 500 that could signal the unwinding of the trade favoring US equities. The tech-heavy gauge closed Friday up 0.2%, for a 1.9% weekly gain.

Meanwhile, data released on Friday showed that the S&P Global flash November composite output index for service providers and manufacturers rose to 55.3, the highest level since April 2022. The yield on the 10-year Treasury fell about one basis point to 4.42%.