On Friday, the S&P 500 hit a historic milestone by closing above 5,000 points for the first time, boosted by strong earnings and economic indicators that boosted confidence in the U.S. economy’s ability to shake off a recession.
Investor enthusiasm remained particularly high for major tech companies such as Google’s parent company Alphabet Amazonto inspire Nasdaq Even upwards.
“This is an environment that emphasizes the importance of following the leaders,” Adam Sirhan of 50 Park Investments said, highlighting the current market dynamics. He further explained, “When you look at the leading stocks wall Street“Clearly you can see that technology continues to lead the way time and again.”
The S&P 500 ended the day at 5,026.61, up 0.6 percent and marking its 10th record close of the year. Meanwhile, the Nasdaq Composite Index rose 1.3 percent to 15,990.66, but Dow Jones The industrial average saw a marginal decline of 0.1 percent and closed at 38,671.69.
As inflation eased and the Federal Reserve moved away from large interest rate hikes, an upward trend in stocks has been evident since late October. Anticipation is rising for the next Consumer Price Index (CPI) update, especially after the December data was revised downwards.
In the corporate sector, Expedia shares fell 17.8 percent after the company reported earnings that fell short of last year’s performance. Ariane Gorin has been appointed as the new CEO, replacing Peter Kern, who will remain as Vice Chairman.
The surge in megacap stocks has played a key role in pushing the S&P 500 beyond the 5,000-point mark for the first time. The rally is part of a broader trend that has seen the Nasdaq surpass the 16,000 mark for a while, driven by significant gains in megacap and semiconductor stocks including Nvidia, led by strong participation in artificial intelligence (AI) technology and Interest has increased. Earnings report.
Nvidia’s stock climbed 3.6 percent, hitting a new high, after it reported its expansion into a new business unit dedicated to custom chip design for cloud computing and AI applications. The move comes amid a broader industry discussion about increasing chip production capabilities to support AI advancements.
David Lefkowitz of UBS Global Wealth Management commented on the growth of the AI sector given the substantial demand for AI infrastructure. Although S&P and Nasdaq milestones may not significantly alter investors’ risk-reward calculations, they do highlight current market dynamics.
The performance of technology giants such as Microsoft, Amazon and Alphabet also contributed to the market’s gains. With nearly two-thirds of S&P 500 companies reporting, earnings growth for the fourth quarter is now estimated at 9.0 percent, exceeding initial expectations.
Tim Griskey of Ingalls & Snyder in New York commented on Nvidia’s strong earnings and potential growth opportunities in cloud computing and AI as key market drivers.
As the market awaits further data on consumer prices, the focus remains on the Federal Reserve’s interest rate decisions. Despite recent strong economic data and hawkish statements from Fed officials, there is speculation of a possible rate cut at the end of the year.
The week concluded with the fifth consecutive weekly gain for all three major indices, underscoring the market’s positive trajectory amid ongoing economic and corporate growth.
(with inputs from agencies)
Investor enthusiasm remained particularly high for major tech companies such as Google’s parent company Alphabet Amazonto inspire Nasdaq Even upwards.
“This is an environment that emphasizes the importance of following the leaders,” Adam Sirhan of 50 Park Investments said, highlighting the current market dynamics. He further explained, “When you look at the leading stocks wall Street“Clearly you can see that technology continues to lead the way time and again.”
The S&P 500 ended the day at 5,026.61, up 0.6 percent and marking its 10th record close of the year. Meanwhile, the Nasdaq Composite Index rose 1.3 percent to 15,990.66, but Dow Jones The industrial average saw a marginal decline of 0.1 percent and closed at 38,671.69.
As inflation eased and the Federal Reserve moved away from large interest rate hikes, an upward trend in stocks has been evident since late October. Anticipation is rising for the next Consumer Price Index (CPI) update, especially after the December data was revised downwards.
In the corporate sector, Expedia shares fell 17.8 percent after the company reported earnings that fell short of last year’s performance. Ariane Gorin has been appointed as the new CEO, replacing Peter Kern, who will remain as Vice Chairman.
The surge in megacap stocks has played a key role in pushing the S&P 500 beyond the 5,000-point mark for the first time. The rally is part of a broader trend that has seen the Nasdaq surpass the 16,000 mark for a while, driven by significant gains in megacap and semiconductor stocks including Nvidia, led by strong participation in artificial intelligence (AI) technology and Interest has increased. Earnings report.
Nvidia’s stock climbed 3.6 percent, hitting a new high, after it reported its expansion into a new business unit dedicated to custom chip design for cloud computing and AI applications. The move comes amid a broader industry discussion about increasing chip production capabilities to support AI advancements.
David Lefkowitz of UBS Global Wealth Management commented on the growth of the AI sector given the substantial demand for AI infrastructure. Although S&P and Nasdaq milestones may not significantly alter investors’ risk-reward calculations, they do highlight current market dynamics.
The performance of technology giants such as Microsoft, Amazon and Alphabet also contributed to the market’s gains. With nearly two-thirds of S&P 500 companies reporting, earnings growth for the fourth quarter is now estimated at 9.0 percent, exceeding initial expectations.
Tim Griskey of Ingalls & Snyder in New York commented on Nvidia’s strong earnings and potential growth opportunities in cloud computing and AI as key market drivers.
As the market awaits further data on consumer prices, the focus remains on the Federal Reserve’s interest rate decisions. Despite recent strong economic data and hawkish statements from Fed officials, there is speculation of a possible rate cut at the end of the year.
The week concluded with the fifth consecutive weekly gain for all three major indices, underscoring the market’s positive trajectory amid ongoing economic and corporate growth.
(with inputs from agencies)
