Market Surge: Economic Optimism Lifts Stocks Amid Policy Speculations

U.S. stocks remained steady as data showed strong economic activity. The Russell 2000 outperformed with a significant rise. Optimism about Trump's policies and expectations of a Fed rate cut fueled markets. Tensions between Ukraine and Russia and individual stock movements also influenced investor sentiment.

On Friday, the S&P 500 and Dow Jones hovered around previous week's levels, benefiting from data indicating robust economic activity in the U.S. The small-cap-focused Russell 2000 index showed a strong performance, rising by 1.3%.

Business activity surged to a 31-month high in November amid optimism about President-elect Donald Trump's policies favoring deregulation and economic enhancement. Eric Schiffer, CEO of The Patriarch Organization, attributed the surge to executives acting preemptively in anticipation of these changes.

Despite economic growth, Alphabet experienced a 1.7% loss due to legal challenges from the Department of Justice, affecting the communication services sector. In contrast, consumer discretionary and certain value stocks saw gains, reflecting positive sentiment about upcoming fiscal policies and potential Federal Reserve moves.

(With inputs from agencies.)