Stocks Rally as S&P 500 Soars Above 5,000
WASHINGTON – Stocks extended their winning streak on Friday, with the S&P 500 reaching a new record high above the 5,000 level. The tech-heavy Nasdaq also surged, while the Dow lagged behind.
At present, the S&P 500 is up 0.3 percent at 5,013.41, while the Nasdaq is up 0.9 percent at 15,927.27. In contrast, the Dow slipped 0.2 percent to 38,659.67.
The positive performance on Wall Street may be attributed, in part, to the upbeat reaction from traders to the Labor Department’s data showing a modest downward revision to consumer price growth in December. The consumer price index rose by 0.2 percent, slightly lower than the previously reported 0.3 percent increase.
Notably, core consumer prices, which exclude food and energy prices, remained unchanged at 0.3 percent.
However, trading activity remained somewhat subdued due to the absence of major U.S. economic data, leading some traders to stay on the sidelines. Many investors are also waiting for key data set to be released next week, including reports on consumer and producer price inflation, retail sales, and industrial production.
Several individual stocks were in the spotlight. Cloud services provider Cloudflare (NET) saw its shares surge after reporting better-than-expected fourth-quarter results and providing an optimistic outlook. Bitcoin miner CleanSpark (CLSK) also experienced a spike after reporting an unexpected fiscal first-quarter profit.
On the other hand, shares of image-sharing company Pinterest (PINS) plummeted after reporting weaker-than-expected fourth-quarter revenues and disappointing guidance.
In sector news, computer hardware stocks rallied, lifting the NYSE Arca Computer Hardware Index to a record intraday high with a 1.6 percent gain. Semiconductor, software, and networking stocks also performed well, contributing to the strong performance of the Nasdaq.
Conversely, gold stocks experienced downward pressure, dragging the NYSE Arca Gold Bugs Index down by 1.4 percent to a nearly two-month low. This decline was in response to a decrease in the price of gold, with April delivery falling to $2,038 an ounce.
In overseas trading, stock markets across the Asia-Pacific region delivered a mixed performance. Japan’s Nikkei 225 Index edged up 0.1 percent, while Hong Kong’s Hang Seng Index slid 0.8 percent. The major European markets also moved downward, with the French CAC 40 Index falling 0.6 percent, and the German DAX Index and the U.K.’s FTSE 100 Index both dropping 0.4 percent.
In the bond market, treasury yields initially gained strength but later showed little direction. Currently, the yield on the benchmark ten-year note is up less than a basis point at 4.175 percent.
Disclaimer: This article contains factual information and does not constitute investment advice. The author is not a financial professional, and this article should not be considered as a recommendation to buy or sell securities. Please conduct your own research and consult with a financial advisor or professional before making any investment decisions.
