US stocks extended their gains on Friday, building on a strong November performance, despite Federal Reserve Chair Jerome Powell's cautious comments on rate hikes. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed positive for the fifth consecutive week, signaling continued investor optimism in the markets.

The S&P 500 reached a new 2023 closing high, rising approximately 0.6%, while the Dow Jones Industrial Average advanced about 0.8%, gaining nearly 300 points. The tech-heavy Nasdaq Composite saw a 0.5% increase. The stellar performance in November contributed to the best monthly results for stocks since 2022, as expectations of rate cuts grew following the Fed's flexible stance after their November 1 meeting.

Federal Reserve Chair Jerome Powell spoke on Friday, reiterating that it would be "premature" to conclude that rate hikes are over or speculate on when cuts would occur. Powell's remarks came after October's data showed a cooling in inflation to its lowest levels since 2021. Despite Powell's pushback on rate cut talks, the market reacted positively to his suggestion that the central bank could be done with rate hikes.

However, oil prices took a hit as OPEC+'s additional output curbs failed to convince skeptical investors. WTI crude futures traded just above $74 a barrel, down over 2%, while Brent futures remained below $83.

Looking ahead to the coming week, investors will be closely observing the US housing market as Toll Brothers prepares to report earnings. Additionally, retail market observers will be keen to analyze information and forecasts from Dollar General and Lululemon, aiming to gain insight into the state of the American consumer. Economic indicators such as the Job Openings and Labor Turnover data for October and the November jobs report will provide further insight into the labor market and influence the direction of the Federal Reserve's tightening campaign.

In other news, Apple and Paramount are reportedly in talks to bundle their streaming services, joining other streaming providers attempting to attract customers amidst a crowded field. This bundling strategy aims to offer discounted pricing and a more extensive content library to subscribers.

Among the trending stocks on Friday were Paramount, which rose over 9% following reports of the potential bundling deal with Apple, Pfizer, which fell 6% after discontinuing the study of its obesity treatment due to high side effects, Coinbase, which rose more than 6% following a settlement between US authorities and Binance, and Bitcoin, which rose nearly 2% to surpass $38,000 as investor optimism grew.

Despite Powell's cautionary remarks, US stocks showed resilience and traded higher in the afternoon session. The S&P 500 increased around 0.5%, the Dow Jones Industrial Average rose approximately 0.7%, and the Nasdaq Composite advanced 0.4%.

On a less positive note for Tesla, the much-anticipated Cybertruck failed to impress the market, with shares of the all-electric automaker falling 2% in morning trading Friday. This comes after CEO Elon Musk faced criticism following an interview at the New York Times DealBook conference.

As the year draws to a close, investors remain cautiously optimistic, carefully monitoring market trends, economic indicators, and central bank statements for signs of stability and growth.