Dow leaps over 400 points to record close as investors welcome signs of robust economy

The Dow surged 426 points to a record close Friday, and all three major indexes posted weekly gains, as investors took comfort from data pointing to robust economic activity in the world’s biggest economy.The Dow Jones Industrial Average finished at 44,296.51, up 1%, a day after soaring more than 450 points.The S&P 500 gained 0.4%, while the Nasdaq edged up 0.2%.The S&P and the Dow reached one-week highs.A measure of business activity raced to a 31-month high in November, boosted by hopes for lower interest rates and more business-friendly policies from President-elect Donald Trump’s administration next year.The domestically focused small-cap Russell 2000 index rose and outperformed large-cap indexes.

The index hit its highest in more than a week and was set for weekly advances.Meanwhile, Alphabet fell following Thursday’s 4% drop, as the Department of Justice argued to a judge the company was monopolizing online search.AI bellwether Nvidia also slipped in choppy trading following its quarterly forecast on Wednesday.“I’ve been looking for this leadership change to go from technology to everything else.I think we may be in the midst of that shift.

Small caps are acting much better, values are acting better,” said Mark Hackett, Chief of Investment Research at Nationwide.Expectations on the Federal Reserve’s policy move in December have recently swayed between a pause and a cut, as investors weighed the likely impact of Trump’s plans on price pressures.There is a 59.6% probability the central bank will lower borrowing costs by 25 basis points, as per the CME Group’s FedWatch Tool.Geopolitics were top of mind this week as investors monitored a missile exchange between Ukraine and Russia, after Moscow lowered its threshold for a nuclear retaliation. The markets are also awaiting Trump’s Treasury Secretary pick.“The fact that we’ve been calm on a nice, steady stair step pattern higher is very encouraging and re...