Home » Private Sector » S&P 500 ends with record high for 2nd session in row

Private Sector

S&P 500 ends with record high for 2nd session in row

S&P 500

The S&P 500 secured its second consecutive record high close on Monday, bolstered by the continued upward momentum of tech stocks. Investors eagerly anticipate upcoming corporate reports to gain insights into this year’s profit outlook.

As of Friday’s finish, the S&P 500 officially entered a bull market, marking a positive trend since its low on Oct. 12, 2022, according to a widely used measure.

This week, corporate giants such as Netflix, Tesla, Abbott Laboratories, Intel, and Johnson & Johnson are set to report their earnings. The following week is expected to see reports from influential tech companies, including Microsoft and Apple.

Quincy Krosby, Chief Global Strategist at LPL Financial in Charlotte, North Carolina, emphasized the critical role that earnings and guidance will play in sustaining the market’s momentum, particularly within the mega tech sector.

The semiconductor index reached a new all-time high, gaining 0.3%, and Nvidia also secured a fresh record with a 0.3% increase. The S&P 500 technology index demonstrated a 0.4% uptick.

S&P 500

Investors are keenly awaiting reports on the personal consumption expenditure (PCE) index, S&P Global PMI readings, and an advance fourth-quarter GDP print. These releases are anticipated to offer insights into the U.S. central bank’s future policy decisions.

“The equity market is pretty confident here, just given the strength that we’ve seen so far in the first few weeks of the year on the back of the consumer,” noted Matt Stucky, Chief Portfolio Manager for Equities at Northwestern Mutual Wealth Management Company.

Closing figures for the day included a 0.36% rise in the Dow Jones Industrial Average, a 0.22% gain in the S&P 500, and a 0.32% increase in the Nasdaq Composite.

The market sentiment indicates a shift in expectations for a rate cut, with a focus on May rather than March, according to the CME Group’s FedWatch Tool.

Archer-Daniels-Midland witnessed a significant downturn, with its shares plummeting 24.2%—the largest percentage fall in decades. This followed the placement of its CFO on administrative leave for an investigation and a cut in its full-year profit forecast.

Gilead experienced a 10.2% decline after reporting that its drug, Trodelvy, did not show a significant improvement in survival for previously treated patients with advanced non-small cell lung cancer (NSCLC) in a late-stage study.

U.S. exchanges recorded a trading volume of 11.86 billion shares, slightly above the 11.42 billion average for the past 20 trading days.

Advancing issues significantly outnumbered declining ones on both the NYSE and Nasdaq, reflecting a positive market breadth. The S&P 500 marked 82 new 52-week highs and 3 new lows, while the Nasdaq Composite recorded 161 new highs and 130 new lows.