The S&P 500 index surged by 0.7%, reaching 4,819 points at 1:13 p.m. ET in New York, shattering the previous record highs of two years ago, marking a resurgence for the bulls of Wall Street. Additionally, technology stocks continued to soar, driven by companies associated with the rapid growth of artificial intelligence.
The tech-heavy Nasdaq 100 surpassed the 17,000-point mark, poised to conclude its eleventh positive week out of the last 12. Notably, shares of chipmakers sustained their outperformance, with the VanEck Semiconductor ETF (SMH) climbing over 7% for the week, set for its most robust performance since late October.
Meanwhile, Dow Jones blue chips showed a 0.6% increase, while Russell 2000 small caps remained relatively flat.
On the macroeconomic front, Friday witnessed a robust consumer confidence report, as the University of Michigan’s gauge exceeded expectations in January, reaching the highest level since July 2021.
Traders scaled back their expectations of a Fed rate cut in March due to stronger-than-expected economic data this week. Fed futures are currently pricing in only a 50% likelihood of a Fed rate cut in March, down from over 70% the previous week. Surprisingly, this failed to elicit bearish reactions in the stock market.
In terms of Federal Reserve activity, Friday saw two “dovish-leaning” officials open the door to rate cuts, slightly contradicting their earlier remarks this week. Atlanta Fed President Raphael Bostic expressed openness to changing his outlook on the timing of rate cuts, while Chicago Fed President Austan Goolsbee emphasized the potential for nominal rate cuts as inflation continues to decline.
Treasury yields witnessed a gradual increase for shorter-dated, more policy-sensitive maturities, as the two-year yield rose by 6 basis points to 4.42%, marking a 26-basis-point surge 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 by 0.7% to $480, the SPDR Dow Jones Industrial Average (DIA) increased by 0.6% to $377.00, and the tech-heavy Invesco QQQ Trust (QQQ) was trading 1.3% higher at $418.40, according to Benzinga Pro data.
Sector-wise, the Technology Select Sector Fund (XLK) continued to outperform, climbing by 1.6%, followed by the Financials Select Sector Fund (XLF).
The Utilities Select Sector Fund (XLU) was the laggard, witnessing a 0.6% decline.
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 including 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) surged by over 10% in reaction to upbeat financial results.
- Wayfair (W) rose by over 8% after announcing layoffs affecting 13% of its workforce.
- Celsius Holdings Inc. (CELH) tumbled by nearly 12% as Bank of America released a bearish note, downgrading the stock from Overweight to Neutral.
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