Investors around America are skeptical about whether Americans will continue spending after black Friday retail extravaganza. U.S stocks are declining after a shortened trading day on Friday. Stock trading at the NYSE surged on Friday as investors looked to capitalize on the key trading day. US main indexes; Dow Jones industrial average and NASDAQ reached new record highs during the extravaganza. This saw a trade activity increase of between 22% and 28% when compared to the record lows seen earlier in the year between January and February. This increase is attributable to the black Friday trade activity.
However, the start of the week has seen a slow down in the trade. Black Friday retail extravaganza is normally characterized by bargain deals that see more shoppers coming out to shop. According to the National Retail Federation, more bargain shoppers came out shopping this year, but the average amount spent falls short than that of 2015. However, Online shopping soared, surpassing $5 billion with a record $1.2 billion being traded on mobile phone alone according to statistics from Adobe.
It is expected that things will slow down this cyber Monday as shoppers may have already gotten most of the products they wanted during Friday’s extravaganza. However, all this happens as OPEC Countries are planning on a joint production cut. This comes ahead of their meeting on Wednesday. The production cut is largely expected to increase the price of oil across board with consumers taking advantage of the current prices.
Black Friday retail extravaganza is a big thing in the USA. Most shoppers across the country try to capitalize on the low prices of commodities offered by different retail stores across the country. As a result, there is an increase of shoppers looking for commodities that they deem expensive on other days. Traditionally, the week following black Friday retail extravaganza is usually characterized by reduced trade volumes.