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S&P 500 Closes Above 5,000 As Tech Stocks Rally

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February 09 2024 11:42AM

With technology stocks leading the charge, stocks moved mostly higher over the course of the trading session on Friday. The major averages extended a recent upward trend, with the S&P 500 closing above 5,000 for the first time ever.

The tech-heavy Nasdaq posted a standout gain, surging 196.95 points or 1.3 percent to 15,990.66 and continuing to close in the on the record highs set in November 2021.

The S&P 500 also climbed 28.70 points or 0.6 percent to 5,026.61, while the narrower Dow bucked the uptrend amid a pullback by Disney (NYSE:DIS) and edged down 54.64 points or 0.1 percent to 38,671.69.

For the week, the Nasdaq shot up by 2.3 percent and the S&P 500 jumped by 1.4 percent. The Dow inched slightly higher.

The strength on Wall Street partly reflected a positive reaction to data from the Labor Department showing a modest downward revision to consumer price growth in December.

The revised data showed the consumer price index rose by 0.2 percent in December compared to the previously reported 0.3 percent increase.

Meanwhile, the increase by core consumer prices, which exclude food and energy prices, was unrevised at 0.3 percent.

While the revised data is not likely to have a major impact on the outlook for interest rates, the modest revision seemed to provide a jolt to tech stocks.

Semiconductor stocks extended the rally seen over the two previous sessions, driving the Philadelphia Semiconductor Index up by 2.0 percent.

Computer hardware and software stocks also saw considerable strength, with the NYSE Arca Computer Hardware Index and the Dow Jones U.S. Software Index climbing by 1.8 percent and 1.4 percent, respectively.

Outside of the tech sector, brokerage and retail stocks saw notable strength, while energy stocks moved to the downside despite a continued increase by the price of crude oil.

Among individual stocks, Bitcoin miner CleanSpark (NASDAQ:CLSK) skyrocketed by 32.9 percent after reporting an unexpected fiscal first quarter profit on better than expected revenues.

Shares of Cloudflare (NYSE:NET) also soared by 19.5 percent after the cloud services provider reported fourth quarter results that beat expectations and provided upbeat guidance.

Meanwhile, shares of Pinterest (NYSE:PINS) tumbled by 9.5 percent after the image-sharing company reported weaker than expected fourth quarter revenues and provided disappointing guidance.

Sector News

Semiconductor stocks are extending the strong upward move seen over the two previous sessions, resulting in a 1.6 percent jump by the Philadelphia Semiconductor Index. The index is on pace to end the session at a record closing high.

Computer hardware and software stocks also continue to see considerable strength, contributing to the surge by the tech-heavy Nasdaq.

Brokerage and retail stocks have also moved notably higher on the day, while energy stocks have come under pressure despite a continued increase by the price of crude oil.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance, with markets including China and South Korea closed for holidays. Japan’s Nikkei 225 Index inched up by 0.1 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.

Meanwhile, the major European markets all saw modest weakness on the day. While the French CAC 40 Index fell by 0.3 percent, the German DAX Index and the U.K.’s FTSE 100 Index both dipped by 0.2 percent.

In the bond market, treasuries moved modestly lower over the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.7 basis points to a nearly two-month closing high of 4.187 percent.

Looking Ahead

The latest economic data is likely to be in focus next week, with traders likely to keep a close eye on reports on consumer and producer price inflation, retail sales and industrial production.

On the earnings front, Coca-Cola (KO), Kraft Heinz (KHC), Cisco (CSCO) and Deere (DE) are among the companies due to report their quarterly results next week.