Stocks rose later on Friday December’s revised inflation reading lower than first reported and the S&P 500 closed above the 5,000 level as strong earnings and economic news continued.
The Dow Jones Industrial Average While falling 90 points or 0.2% S&P 500 It increased by 0.5%. The Nasdaq Composite added 1.2%.
The S&P added 1.4% for the week Nasdaqincreased by 2.3%. Both indices posted their fifth consecutive winning week and 14th out of 15. The Dow ended 0.1% lower.
“At the end of the day, we’re still seeing great good news on the economic front and the market is reacting to that,” said Dana D’Auria, chief investment officer at Envestnet. “The longer this story is, the more likely it is that we’re landing here.”
A solid earnings season, easing inflation data and a solid economy fueled the 2024 market rally, with the S&P 500 posting a fifth straight week of gains. It lifted the index above the 5,000 level after touching above the stage for the first time during Thursday’s session. The S&P crossed 4,000 for the first time in April 2021.
“A close above this closely watched level will certainly generate headlines and further increase fears of missing out on emotion (FOMO),” said Adam Turnquist, chief technical strategist at LPL Financial. “Outside of a potential sentiment boost, round numbers like 5,000 often provide an area of psychological support or resistance for the market.”
A revision down The consumer price index also helped sentiment in December. The government revised the figure to 0.2% growth from the 0.3% increase initially reported. Excluding food and energy, core inflation figures were flat. Treasury yields briefly traded lower after the revised figures were released. CPI figures for January are due next week.
Megacap tech stocks rallied again on Friday, contributing to the S&P’s move above 5,000. Nvidia and Alphabet each added more than 2%. Cloudflare increased by 19.5% strong earnings, empowering the broader cloud sector in tandem. Semiconductor stocks also rose VanEck Semiconductor ETF It increased by 2.2%.
The fourth quarter weighed on earnings, along with the back half of the reporting period PepsiCo down 3.6% due to mixed results. Take-Two Interactive It faced a disappointing forecast, falling 8.7% Pinterest then decreased by 9.5% make a poorer than expected forecast and missing revenue estimates.
Despite these downsides, earnings have so far proved stronger than expected. A total of 332 S&P companies reported results, with about 81% reporting earnings that beat analysts’ expectations, according to LSEG. That compares to a 67% hitting rate in a typical quarter since 1994.