The S&P 500 index surged 0.7% to reach 4,819 points at 1:13 p.m. ET in New York, surpassing the previous record highs set two years ago. Bulls have regained control of Wall Street, while technology stocks have continued to push to all-time highs, buoyed by the growth of companies associated with artificial intelligence. The tech-heavy Nasdaq 100 has breached the 17,000-point mark, set to close its eleventh positive week in the last 12. Shares of chipmakers, such as VanEck Semiconductor ETF (SMH), have been stellar performers, with SMH up over 7% for the week, registering its best performance since late October. The Dow Jones blue chips rose 0.6%, and the Russell 2000 small caps remained flat.
In macroeconomic news, Friday witnessed a robust consumer confidence report, as the University of Michigan’s gauge far exceeded expectations in January, reaching its highest level since July 2021. Stronger-than-expected economic data this week has led traders to scale back their expectations of a Fed rate cut in March. Fed futures now reflect only a 50% likelihood of a Fed rate cut in March, down from over 70% last week, yet this has not sparked bearish reactions in the stock market.
On the Fed front, Friday saw two “dovish-leaning” officials, Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee, opening the door to rate cuts, countering earlier remarks from this week. Treasury yields for shorter-dated, more policy-sensitive maturities have been grinding higher, with the two-year yield up by 6 basis points to 4.42%, representing a 26-basis-point increase for the week.
Friday’s Performance In US Major Indices, ETFs
| Index | Price | % Change |
|---|---|---|
| Nasdaq 100 | 17,189.43 | 1.3% |
| S&P 500 | 4,819.44 | 0.8% |
| Dow Jones | 37,707.98 | 0.6% |
| Russell 2000 | 1923.88 | 0.0% |
The SPDR S&P 500 ETF Trust (SPY) rose 0.7% to $480, the SPDR Dow Jones Industrial Average (DIA) surged 0.6% to $377.00, and the tech-heavy Invesco QQQ Trust (QQQ) advanced 1.3% to $418.40. According to Benzinga Pro data, the Technology Select Sector Fund (XLK) continued to outperform, rising 1.6%, followed by the Financials Select Sector Fund (XLF). Conversely, the Utilities Select Sector Fund (XLU) was the laggard, decreasing by 0.6%.
Chart Of The Day: S&P 500 Index Hits All-Time Highs
Friday’s Stock Movers
- Paypal Holdings Inc. (PYPL) led gains on the Nasdaq 100, rising by 5.2%.
- Shares of chipmakers – Broadcom Inc. (AVGO), QUALCOMM Incorporated (QCOM), Texas Instruments Incorporated (TXN), and Lam Research Corporation (LRCX) – all witnessed increases between 4% and 5%.
- Ally Financial Inc. (ALLY) rose over 10% in reaction to upbeat financial results.
- Wayfair (W) rose over 8% after announcing layoffs affecting 13% of its workforce.
- Celsius Holdings Inc. (CELH) tumbled nearly 12% as Bank of America released a bearish note, downgrading the stock from Overweight to Neutral.
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