Black Friday online sales on track to hit record high: What are people buying?
aire images/Getty Images
(NEW YORK) — People haven’t only been filling their plates this Thanksgiving weekend — it also seems they’ve been filling their online shopping carts.
Black Friday online shopping this year is on pace to break a record with between $10.7 billion and $11 billion in sales, according to Adobe Analytics, which tracks U.S. e-commerce data.
As of Friday evening, spending on online shopping was up more than 8% compared to last year, according to Adobe.
The record pace of Black Friday buying follows record-setting online shopping on Thanksgiving itself, the analytics firm said. Consumers spent a record $6.1 billion online on Turkey Day — up nearly 9% compared to a year ago, according to Adobe.
What are people buying this Black Friday?
Adobe said deep discounts are likely fueling the online spending spree, including discounts on toys of more than 27% off the listed price. Toys have seen a 178% boost in online Black Friday sales so far, compared to an average day in October.
Other popular items on Black Friday include makeup and skin care sets, LEGO sets, “Wicked” toys, Bluetooth speakers, TVs, patio heaters and air fryers, according to Adobe.
Increasingly, online shopping is happening on smaller screens. More than half of all online sales on Black Friday — 57.6% — were on mobile screens, according to Adobe. That’s up from 55.5% last year.
(WASHINGTON) — The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, delivering relief for borrowers at the central bank’s last meeting before President-elect Donald Trump takes office next month.
The central bank predicted fewer rate cuts next year than it had previously indicated, however, suggesting concern that inflation may prove more difficult to bring under control than policymakers thought just a few months ago.
The major stock indexes inched downward in trading after the announcement in response to the forecast of fewer rate cuts.
Speaking at a press conference in Washington D.C. on Wednesday, Fed Chair Jerome Powell said the central bank may proceed at a slower pace with future rate cuts, in part because it has now lowered interest rates a substantial amount.
Powell also said a recent resurgence of inflation influenced the Fed’s expectations, noting that some policymakers considered uncertainty tied to potential policy changes under Trump.
“It’s common-sense thinking that when the path is uncertain, you get a little slower,” Powell said. “It’s not unlike driving on a foggy night or walking around in a dark room full of furniture.”
The move marked the third consecutive interest rate cut since the Fed opted to start dialing back its fight against inflation in the fall. The Fed has lowered interest rates by a percentage point in recent months.
However, the Fed’s forecast on Wednesday said it anticipates only a half a percentage point of rate cuts next year and another half-percent cut in 2026.
The benchmark interest rate helps determine loan payments for everything from credit cards to mortgages. Even after recent cuts, the Fed’s interest rate remains at a historically high level of between 4.25% and 4.5%.
The size of the interest rate cut on Wednesday matched investors’ expectations.
The latest rate cut may prove the Fed’s last for many months, experts previously told ABC News.
A recent bout of stubborn inflation could prompt central bankers to freeze interest rates in place as they bring price increases under control. A humming economy, meanwhile, shows little need for the jolt of activity that lower borrowing costs may provide, the experts said.
Consumer prices climbed 2.7% in November compared to a year ago, marking two consecutive months of accelerating inflation, government data last week showed.
Inflation has slowed dramatically from a peak of more than 9% in June 2022. But the recent uptick has reversed some progress made at the start of this year that had landed price increases right near the Fed’s target of 2%.
In August, Trump said the president should have a role in setting interest rates. The proposal would mark a major shift from the longstanding norm of political independence at the Fed.
Powell struck a defiant tone last month when posed with the question of whether he would resign from his position if asked by Trump.
“No,” Powell told reporters assembled at a press conference in Washington, D.C., blocks away from the White House.
When asked whether Trump could fire or demote him, Powell retorted: “Not permitted under the law.”
(NEW YORK CITY) — The U.S. stock market climbed higher in early trading on Tuesday, as voters rushed to the polls and the nation awaited the results of a closely contested presidential election.
The S&P 500 ticked upward about 1%. The Dow Jones Industrial Average gained more than 300 points, jumping about 0.8%. The tech-heavy Nasdaq rose 1.3%.
Gains at large tech firms are helping to boost the market. Shares of Nvidia, an artificial intelligence chipmaker, climbed nearly 3% in early trading.
As of the early afternoon, tech giants Microsoft and Amazon each saw shares rise about 1.5%.
The market upswing follows a flurry of largely positive economic news over the past week. Government data released last week showed robust economic growth over a recent three-month period, alongside a continued cooldown of inflation.
U.S. hiring slowed in October, but fallout from hurricanes and labor strikes likely caused an undercount of the nation’s workers, U.S. Bureau of Labor Statistics data on Friday showed.
Ivan Feinseth, a market analyst at investment firm Tigress Financial, attributed the returns on Tuesday to eager anticipation among investors to move past the U.S. election.
“The nightmare of an endless election and a contentious battle has consumed a lot of the focus and attention. It’s almost over. Then it goes back to the fundamentals of the market,” Feinseth said.
The gains on Election Day extended a banner year for U.S. stocks. The S&P 500 and Nasdaq have each climbed more than 20% this year while the Dow Jones is up about 11%.
The performance has owed to enthusiasm about artificial intelligence as well as resilient economic growth and expectations that interest rates would ease, Feinseth said.
The Federal Reserve cut its benchmark interest rate a half of a percentage point in September, dialing back its yearslong fight against inflation and delivering relief for borrowers saddled with high costs.
The Fed is widely expected to cut interest rates by another quarter of a percentage point when it meets on Thursday, according to the CME FedWatch Tool, a measure of market sentiment.
An expectation of interest rate cuts among investors often sends stocks higher, since lower rates pave the way for cheaper corporate borrowing and the potential for higher profits.
“The market looks toward the future, and the Fed is now on the side of the bulls,” Feinseth said.
Over the full span of the next administration, the market will likely move higher whether the nation elects Vice President Kamala Harris or former President Donald Trump, experts previously told ABC News. However, each candidate’s policies could favor different types of stocks while posing unique risks, they added.
Trump has proposed a combination of low corporate tax rates and loose regulation that would likely bolster corporate profits and propel the stock market higher, experts said. Prices would likely increase under Harris, as they have under the economic stewardship of President Joe Biden, they added.
chairman of the US Federal Reserve Jerome Powell/photo credit:Yuki Iwamura/Bloomberg via Getty Images
(WASHINGTON) — U.S. hiring surged in November, bouncing back from a dismal performance in the previous month and returning to strong growth.
Employers added 227,000 workers last month, exceeding economist expectations of 214,000 additional jobs, U.S. Bureau of Labor Statistics data on Friday showed. The unemployment rate ticked up to 4.2%, which remains historically low.
The fresh data offered a key clue about the health of the economy as the nation hurtles toward end-of-the-year holidays and the inauguration of President-elect Donald Trump. The findings could also help determine whether the Federal Reserve cuts interest rates when officials meet later this month.
U.S. hiring has defied doomsayers for years. Stubborn inflation, high interest rates and a contentious presidential campaign have proven no match for a resilient labor market.
A weaker-than-expected reading may have raised alarm and caused observers to revisit disappointing results in October, which many economists have attributed to one-off disruptions of data collection.
The labor market hit a rare speed bump in October as the economy added 12,000 jobs, its weakest performance since December 2020.
The data appeared to offer little more than a blurry snapshot due to data-gathering disruptions, however. A combination of hurricanes and work stoppages likely caused an undercount of hiring that month, experts told ABC News.
Despite an overall slowdown this year, the labor market has continued to grow. Hiring has persisted at a solid pace; meanwhile, the unemployment rate has climbed but remains near a 50-year low.
Overall, inflation has eased and the economy has expanded, giving rise to hope that the U.S. could achieve a soft landing.
U.S. GDP grew at a 2.8% annualized rate over three months ending in September, U.S. Bureau of Economic Analysis data last month showed. That figure fell slightly below economists’ expectations, but demonstrated brisk growth that was propelled by resilient consumer spending.
Inflation has slowed dramatically from a peak of more than 9% in June 2022, but price increases remain slightly higher than the Fed’s target of 2%.
The jobs report marks one of the last pieces of significant economic data before the Fed announces its next interest rate decision on Dec. 18.
The Fed is expected to cut interest rates by a quarter of a percentage point, according to the CME FedWatch Tool, a measure of market sentiment.
