U.S. equities closed higher on Friday in a shortened post-Thanksgiving session, as investors wrapped up a tumultuous month and kicked off the holiday shopping season. Despite an early disruption caused by a brief CME Group outage, the three major indexes posted modest gains, buoyed by optimism over potential Federal Reserve interest rate cuts.

The Dow Jones Industrial Average rose 289.30 points (0.61%) to 47,716.42, while the S&P 500 gained 36.48 points (0.54%) to 6,849.09. The Nasdaq Composite climbed 151 points (0.65%) to 23,365.69. For November, the S&P 500 and Dow posted small gains, while the Nasdaq fell 1.5%, weighed down by concerns over tech stock valuations.

Ryan Detrick, chief market strategist at Carson Group, described the month as “a roller coaster,” noting the market swung from “the worst November since the financial crisis” to “the best Thanksgiving week for stocks since 2012.”

CME Outage
The CME Group, the world’s largest exchange operator, experienced an outage that froze trading on its currency platform and futures, affecting foreign exchange, commodities, Treasuries, and stocks. The issue was resolved with less than an hour remaining before the U.S. market opened.

Treasuries and the Dollar
Benchmark U.S. Treasury yields rose slightly on the low-volume trading day, with the 10-year note up 1.7 basis points to 4.015% and the 30-year yield climbing 2.1 basis points to 4.6648%. The 2-year note, sensitive to Fed rate expectations, ticked up 1.4 basis points to 3.495%. Meanwhile, the U.S. dollar weakened, heading for its worst weekly performance since late July, as Fed rate cut expectations grew. The dollar index fell 0.07% to 99.46, with the euro at $1.16 and the yen at 156.15 per dollar.

Commodities
Oil futures were mixed: WTI crude rose 0.65% to $59.03 a barrel, while Brent edged down 0.08% to $63.29 a barrel, with traders closely watching OPEC+ and Russia-Ukraine developments. Gold prices advanced, poised for monthly gains, as market participants bet on potential Fed easing. Spot gold rose 1.51% to $4,220.46 an ounce, and U.S. futures gained 1.41% to $4,223.90 an ounce.

Global Markets
European stocks also posted modest gains for the day and month, extending the longest monthly winning streak since March 2024, supported by easing concerns over U.S. rates and progress in Russia-Ukraine ceasefire talks. MSCI’s global stock index rose 0.43% to 1,004.99, while the STOXX 600 added 0.25%, and the FTSEurofirst 300 gained 0.25%.

Holiday Shopping Outlook
The holiday shopping season is off to a solid start. Adobe Analytics reported online Thanksgiving sales up 5.3%, though some consumers remain cautious due to elevated inflation and softening labor market conditions.

Market analysts remain cautiously optimistic about an end-of-year rally, noting the combination of improving consumer activity, potential Fed rate cuts, and ongoing geopolitical developments as key factors for market sentiment heading into December.