Markets Surge Amidst Economic Optimism and Tech Retreat

U.S. stock markets experienced gains across major indexes, signaling strong economic activity. Small-cap stocks outperformed, while tech giants faced declines after regulatory actions. Investors eagerly anticipate policy directions amidst geopolitical tensions and economic forecasts. Overall, markets showed restrained optimism, avoiding panic despite global challenges.

In a spirited end to the week, all three major U.S. stock indexes recorded notable gains, reflecting investor confidence in America's economic vitality. A November spike in business activity, fueled by anticipated pro-business policies under President-elect Donald Trump, saw the small-cap Russell 2000 outperform with a 1.7% hike, marking a weekly rise approaching 4%.

Despite this upswing, Alphabet's shares fell 1.4% amid continued scrutiny from the U.S. Department of Justice on its search engine dominance, while Nvidia faced a 3.2% decline following mixed quarterly forecasts. In the broader market, an S&P 500 value index edged up 0.74% as investors shifted from tech-heavy growth stocks, reflecting a broader leadership transition in market strength.

Investors remain watchful of Federal Reserve policy moves and geopolitical developments, particularly the Ukraine-Russia tensions. With a potential interest rate cut in December, market sentiment leans towards cautious optimism. Meanwhile, news from the corporate sector showed mixed reactions as Gap Inc soared by 11% on upbeat sales forecasts, whereas Intuit's forecasts led to a 5.3% drop.

(With inputs from agencies.)