Wall Street Rallies On Soft Inflation Data, Bonds Rebound, Travel Stocks Surge: What's Driving Markets Friday?

Risk sentiment returned to Wall Street on Friday, revitalized by softer-than-expected November inflation data leading to a strong market rebound following the selloff triggered by the Federal Reserve’s recent meeting.

The Personal Consumption Expenditure price index rose 2.4% year-over-year in November, falling short of the 2.5% increase forecasted. The core PCE, a key gauge closely watched by the Fed, also missed expectations, rising 2.8% compared to the anticipated 2.9%.

By midday Friday, all major indices were in rally mode, with broad-based gains across sectors. In the S&P 500, 480 companies traded higher, and every sector advanced as investors welcomed the reprieve in inflationary pressures.

The real estate sector led the charge, rebounding sharply after being hit hardest in the aftermath of the Fed meeting. Small-cap stocks in the Russell 2000 also posted robust gains, powered by a strong recovery in regional banks.

The travel industry soared, driven by upbeat earnings and optimistic guidance from Carnival Corp. CCL, which fueled enthusiasm across the sector. The cruise line rose by 6%, eyeing the highest close since October 2021.

In the bond market, yields dropped by approximately 5 basis points across the curve, boosting Treasury prices. The iShares 20+ Year Treasury Bond ETF TLT gained nearly 1%, recovering some ground after a 3% slide over the previous two sessions. The dollar softened, declining 0.6%, while gold gained over 1%.

Bitcoin BTC/USD attracted dip buyers after plunging to $92,118. Although the cryptocurrency pared its daily losses, it remains on track for its worst weekly performance in four months.

Friday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Dow Jones	42,853.53	1.2%
S&P 500	5,934.51	1.1%
Russell 2000	2,246.04	1.1%
Nasdaq 100	21,339.90	1.1%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rose 1.1% to $592.31.
• The SPDR Dow Jones Industrial Average DIA rose 1.2% to $429.61.
• The tech-heavy Invesco QQQ Trust Series QQQ edged 1.4% higher to $521.53.
• The iShares Russell 2000 ETF IWM soared 1.2% to $222.59.
• The Real Estate Select Sector SPDR Fund XLRE outperformed, up by 2.3%; the Consumer Staples Select Sector SPDR Fund XLB lagged, up 0.6%.

Friday’s Performance In Major US Indices, ETFs

• Novo Nordisk A/S NVO plummeted 17%, marking its worst single-day drop since April 2002. after disappointing weight-loss trial data for its obesity drug, CagriSema.
• Enphase Energy Inc. ENPH rallied over 8% as analysts at OTR Research raised the stock rating from Negative to Mixed.
• Norwegian Cruise Line Holdings Ltd. NCLH also rallied over 6% in reaction to Carnival Cruise’s upbeat results. Other travel-related companies seeing strong gains Friday included Airbnb Inc. ABNB, up 3.9%, Hyatt Hotels Corp. H, up 3.4%, and Royal Caribbean Cruise Ltd. RCL, up 3.6%.
• Nike Inc. NKE fell 1.2% in reaction to its latest quarterly results and FedEx Corp. FDX inched 0.6% higher.

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• EXCLUSIVE: Weight-Loss Market Experts Scoop Up Novo Nordisk Stock After Worst Drop Since 2002 Following Drug Trial Miss

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