S&P 500 Breaks 5000 Barrier, Nasdaq Surges: Tech Stocks Lead Historic Market Rally
S&P 500 Breaks 5000 Barrier, Nasdaq Surges: Tech Stocks Lead Historic Market Rally
By:JJ Kinahan
The bond market’s weakness is raising concern about inflation, but a mis of earnings and data reports are fueling a surge. And how about those Chiefs?
- Tech is continuing to drive market rallies, and the bond market is signaling weakness amid concerns about inflation.
- Earnings season and economic data are blending; rate cut expectations are shifting as the Fed hesitates.
- The AFC Super Bowl win superstition has challenged market optimism. As always, long-term investment plans remain prudent.
Last week witnessed market gains, with the S&P 500 surging 0.6% on Friday, surpassing 5000 for the first time. The Nasdaq Composite also climbed 1.2%, marking a 6.5% year-to-date increase. This bullish streak, observed in 14 of the past 15 weeks, mirrors historical runs not seen since the 1970s and 1990s, as reported by the Wall Street Journal.
Technology stocks remain the focal point, driving Friday's market surge. Applied Materials (AMAT) soared 6.9%, while Nvidia (NVDA) gained 3.6%. Google parent Alphabet (GOOG)and Amazon (AMZN) both rose 2%, with Microsoft (MSFT) following suit with a 1.6% increase.
Awaiting a mix of earnings and data reports
While last week spotlighted corporate earnings, economic data took a back seat. However, the upcoming week promises a blend of both.
The consumer price index (CPI), due tomorrow, anticipates a 0.2% month-over-month and 3% year-over-year increase. Core CPI, excluding volatile food and energy prices, is expected to rise 0.3% month-over-month and 3.8% year-over-year. Later in the week, retail sales and the producer price index figures will be released.
Despite the market's optimism—driven by strong earnings forecasts and anticipated rate cuts—the bond market signals weakness. Yields on the 10-year note, climbing since December's low of 3.78%, settled at 4.19% on Friday, although slightly down in premarket trading at 4.15%.
The Federal Reserve's reluctance to cut rates in March contrasts with market expectations, which previously stood at over 80% but now linger around 16%. A reason behind this hesitation is robust economic growth, potentially accompanied by inflation. Rising oil prices, reaching $76.60 and decreasing slightly in premarket trading, remain a focal point because of their potential inflationary impact.
While the S&P 500 closed above 5000, few stocks achieved new highs, with none on the S&P 500 and only eight on the Nasdaq Composite, according to MarketWatch. However, neither index saw any new lows.
This week, aside from economic data releases, a plethora of earnings reports awaits investors. Notable names besides the aforementioned Applied Materials include Deere (DE), Coinbase (COIN) and DraftKings (DKNG) are scheduled to report. Although significant, these reports may not wield the same market-moving power as previous releases.
The Super Bowl and the markets
The superstition regarding AFC Super Bowl wins coinciding with struggles in the market warrants cautious reconsideration. With the Chiefs winning the last two contests, the myth may be exploding.
In any case, adhering to long-term investment strategies remains prudent amid market dynamics.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.