U.S. Markets Soar Amid Optimism and Policy Anticipation

U.S. stocks surged on Friday, buoyed by optimistic economic outlooks and anticipation of policy changes under President-elect Trump. Key indices recorded significant weekly gains, driven by a solid corporate earnings season and expectations of Federal Reserve interest rate adjustments. Concerns remain over potential inflation spikes and policy impacts.

U.S. stocks rallied strongly on Friday, with investors showing increased optimism about the economy's health and future interest rate paths. This surge came ahead of potential policy changes with the approaching Trump administration.

The S&P 500 and Dow Jones Industrial Average were on track for their biggest weekly gains since late November, while the Nasdaq saw its best performance since early December. Recent economic data has eased fears of imminent inflation, contributing to expectations that the Federal Reserve may adjust its rate hike plans sooner and more aggressively this year.

Despite concerns about future policy impacts such as tariffs potentially reigniting inflation pressures, positive corporate earnings, particularly from major banks, have provided a tailwind for stocks. The Dow ended up 397.40 points to 43,550.93, the S&P 500 climbed 68.27 points to 6,005.61, and the Nasdaq gained 319.95 points to 19,658.24.

(With inputs from agencies.)