S&P 500 Climbs To New Record Closing High Just Shy Of 5,000
07 Fevereiro 2024 - 7:00PM
IH Market News
After ending Tuesday’s choppy trading session modestly higher,
stocks showed a strong move to the upside during trading on
Wednesday. The Dow and the S&P 500 set new record closing
highs, with the latter reaching an intraday peak just shy of
5,000.
The major averages pulled back off their best levels going into
the close but remained firmly positive. The S&P 500 climbed
40.83 points or 0.8 percent to4,995.06 and the Dow rose 156.00
points or 0.4 percent to 38,677.36, while the tech-heavy Nasdaq
jumped 147.65 points or 1.0 percent to 15,756.64.
The strength on Wall Street may partly have reflected recent
upward momentum, which helped stocks rally late last week despite
waning optimism about the Federal Reserve cutting interest rates in
March.
While CME Group’s FedWatch Tool suggests the chances of March
rate cut are just 18.5 percent, the Fed is still expected to begin
lowering rates sometime in the coming months.
Recent upbeat economic data has seemingly reduced the likelihood
of a near-term rate cut but a strong economy is still seen as a net
positive for stocks.
A positive reaction to some of the latest earnings news also
contributed to notable advance seen over the course of the
session.
Share of Enphase Energy (NASDAQ:ENPH) soared by 16.9 percent
after the solar inverter maker reported weaker than expected fourth
quarter revenues but said it expects demand to improve throughout
2024.
Auto giant Ford (NYSE:F) also surged by 6.1 percent after
reporting better than expected fourth quarter results, providing
upbeat guidance for 2024 and announcing a supplemental dividend of
18 cents per share.
On the other hand, shares of Snap (NYSE:SNAP) plummeted by 34.6
percent after the Snapchat parent reported mixed fourth quarter
results and forecast first quarter sales below analyst
estimates.
“We’re hip deep in company earnings and so far investors have
been somewhat relieved that for the most part the news has been
pretty positive in a season that had a big question mark hanging
over it,” said Danni Hewson, head of financial analysis at AJ
Bell.
In U.S. economic news, the Commerce Department released a report
showing the U.S. trade deficit widened in the month of
December.
The Commerce Department said the trade deficit increased to
$62.2 billion in December from a revised $61.9 billion in
November.
Economists had expected the trade deficit to narrow to $62.2
billion from the $63.2 billion originally reported for the previous
month.
Sector News
Software stocks turned in some of the market’s best performances
on the day, driving the Dow Jones U.S. Software Index up by 1.9
percent to a record closing high.
Significant strength was also visible among semiconductor
stocks, as reflected by the 1.6 percent gain posted by the
Philadelphia Semiconductor Index.
Steel and housing stocks also saw considerable strength, while
biotechnology stocks showed a notable move to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance on Wednesday. China’s Shanghai
Composite Index surged by 1.4 percent, while Hong Kong’s Hang Seng
Index dipped by 0.3 percent and Japan’s Nikkei 225 Index edged down
by 0.1 percent.
Meanwhile, the major European markets all moved to the downside
on the day. While the French CAC 40 Index fell by 0.4 percent, the
German DAX Index and the U.K.’s FTSE 100 Index both slid by 0.7
percent.
In the bond market, treasuries showed a lack of direction over
the course of the session before closing modestly lower. As a
result, the yield on the benchmark ten-year note, which moves
opposite of its price, inched up by 2.0 basis points to 4.110
percent.
Looking Ahead
The U.S. economic calendar remains relatively quiet on Thursday,
although a report on weekly jobless claims is likely to attract
attention.
Trading could also be impacted by reaction to earnings news from
Disney (NYSE:DIS), with the entertainment giant among the companies
releasing their quarterly results after the close of today’s
trading.
For comments and feedback contact: editorial@rttnews.com
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