S&P 500 hits record high in late session rally

All three main indices finished Thursday’s trading day in the green territory, recovering from sharp losses earlier in the week. The S&P 500 closed at a new record high. As of now this year, the 500-stock benchmark has closed on 11 consecutive record highs.

The Nasdaq Composite gained 0.30% to conclude at 15,906.17, while the broad stock index increased by 0.58% to close at 5,029.73. At 38,773.12, the Dow Jones Industrial Average closed 348.85 points higher, or 0.91%, higher.

Outperforming with increases of 6% and 2%, respectively, were Tesla and Meta Platforms. After the Office of the Comptroller of the Currency lifted a significant fine against the bank, Wells Fargo’s shares increased by 7%.

Investors have been evaluating the state of the US economy throughout the week, but so far a number of indicators have sent conflicting messages.

Thursday morning’s new figures showed that January’s retail sales decreased by 0.8%. According to Dow Jones, that is significantly higher than the 0.3% decline that economists had predicted. Treasury yields decreased as a result of growing concerns about the resilience of the US consumer in the face of high interest rates and sticky inflation.

The results season has persisted in presenting a confused image of corporate America. Tripadvisor surged 9% after exceeding both top and bottom line projections. Conversely, after the computer giant revealed layoffs and a bleak sales outlook, Cisco’s stock fell 2%. Following the producer of agricultural machinery’s reduction in its full-year earnings projection, Deere’s stock fell 5%.

This week’s market volatility was caused by a hotter-than-expected inflation report that sent the Dow plunging to its lowest level since March 2023 on Tuesday. The S&P 500 is expected to end the week up 0.06%, while the 30-stock index is now up 0.26% for the week. On the other hand, the Nasdaq is expected to drop 0.53%.

Investors’ outsized reaction was expected given the somewhat higher CPI, and I believe we will attempt to recoup some of it over the course of the remaining week. That was evident yesterday, and it feels like the same kind of grind higher today.

Market participants have positive outlooks for this market going forward. The S&P 500 closes at a record-breaking high.

With the S&P 500 setting a new record high, all three major stock indices finished the day higher. The broad market index finished at 5,029.73, up 0.58%. To close at 38,773.12, the Dow Jones Industrial Average gained 348.85 points, or 0.91%. With a 0.30 percent rise, the Nasdaq Composite closed at 15,906.17.