US Markets
Friday, February 9th, 2024 4:14 pm EDT
Key Points
- Stocks rose on Friday following a lower-than-expected December inflation reading, with the S&P 500 breaking above the historic 5,000 level.
- Despite the Dow Jones Industrial Average slipping slightly, the S&P 500 and the Nasdaq Composite posted gains, contributing to a fifth consecutive week of overall market gains.
- The market rally in 2024 has been fueled by a solid earnings season, easing inflation data, and a resilient economy, with megacap technology stocks like Nvidia and Alphabet driving the S&P’s ascent above 5,000, although some companies, such as PepsiCo and Take-Two Interactive, experienced declines.
The stock market experienced a notable rise as December’s inflation data was revised downwards, fueling optimism among investors. The S&P 500 surged above the historic 5,000 level propelled by a robust earnings season and positive economic indicators, marking its fifth consecutive week of gains. While the Dow Jones Industrial Average slipped slightly, the S&P 500 and the Nasdaq Composite posted gains of 0.3% and 0.8% respectively, contributing to weekly increases of 1.1% for the S&P and 2% for the Nasdaq. The solid earnings reports, coupled with easing inflation figures, have driven the market rally in 2024. The milestone breach of 5,000 for the S&P 500, first crossed in April 2021, has heightened market sentiment and triggered discussions about the psychological impact of round numbers like 5,000 on investor behavior. The revision lower in December’s consumer price index, indicating a 0.2% increase rather than the previously reported 0.3%, further buoyed investor confidence. Notably, megacap technology stocks, including Nvidia and Alphabet, contributed to the S&P’s upward trajectory, with Cloudflare soaring 23% on strong earnings, bolstering the cloud sector. However, some companies, such as PepsiCo and Take-Two Interactive, experienced declines due to mixed results or disappointing outlooks. Despite this, the majority of S&P companies reporting quarterly earnings exceeded expectations, with 77% surprising to the upside, according to FactSet data. Looking ahead, investors await January’s CPI figures for further insights into inflation trends.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/08/stock-market-today-live-updates.html
