The nationwide Black Friday sales reached an impressive $9.8 billion, causing a slight dip in US stocks on Monday as investors absorbed the predominantly online retail sales results.
The impact of extended cyber sales on Monday is anticipated to further influence consumer spending, which set a record at $9.8 billion during the event, reflecting a 7.5% year-over-year growth, as reported by Adobe Analytics.
With Black Friday evolving into a primarily online shopping phenomenon, retailers extending their offers beyond physical stores, the holiday shopping spree is poised to persist with the advent of Cyber Monday deals.
Despite solid holiday sales results, US stocks experienced a marginal decline on Monday, mirroring the $9.8 billion online spending surge.
Brick-and-mortar Black Friday sales, according to MasterCard data, showed a modest 1.1% year-over-year increase, while e-commerce sales witnessed an 8.5% jump, contributing to an overall 2.5% rise in Black Friday sales.
The momentum in holiday consumer spending is expected to persist as retailers roll out a slew of Cyber Monday deals.
Fundstrat's Tom Lee downplayed concerns about the Federal Reserve tightening monetary policy in response to the spending data, stating, "I would not look at strong Black Friday numbers as something the Fed has to panic about," as quoted by Business Insider.
US stock indices showed the following standings shortly after the opening bell on Monday:
• S&P 500: 4,550.80, down 0.19%
• Dow Jones Industrial Average: 35,374.66, down 0.04% (15.49 points)
• Nasdaq Composite: 14,226.69, down 0.17%
Simultaneously, the US dollar is on track for its worst month in 2023, influenced by speculation that the Fed has concluded interest rate hikes. RBC predicted the S&P 500 to reach a new record high of 5,000 next year, aligning with investors' optimistic outlook for 2024.
(With agency inputs)
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