Stock Market Today: S&P 500 Inches Close to Record Highs
The S&P 500 saw a late surge from the day’s lows as corporate earnings continued to drive the race to record highs. This rally helped offset the weakness in tech stocks, particularly in the semiconductor sector. The benchmark came within a hair’s breadth of its prior record close, while the tech-heavy Nasdaq and the blue chip Dow Jones also saw modest gains.
Strong Earnings Reports from Eli Lilly, Palantir, and Spotify
Eli Lilly’s fourth-quarter results surpassed estimates, driven by high demand for its new obesity and diabetes drugs. Palantir Technologies Inc. also reported a Q4 beat on both the top and bottom lines, leading to a surge of nearly 31% in its stock. Furthermore, Spotify Technology SA narrowed its losses in the fourth quarter, with a 17% rise in revenue and an increase in monthly active users.
Tech Stocks Slide on Semiconductor Weakness
The tech sector faced declines, primarily due to weakness in semiconductor stocks such as NVIDIA Corporation, Advanced Micro Devices Inc, and Rambus Inc. The latter reported a significant drop in revenue in Q4 year-on-year. Additionally, DocuSign Inc fell 2% following an announcement about layoffs and the company’s decision to remain a public entity, ending speculation about a potential takeover.
Fed Officials’ Stance on Interest Rates
Federal Reserve officials reiterated that the Fed isn’t in a rush to cut rates, emphasizing the need to address inflation. Minneapolis Fed President Neel Kashkari pointed out that recent inflation data show progress towards the 2% target, while Federal Reserve Bank of Cleveland President Loretta Mester stated that policymakers might consider rate cuts later this year if inflation continues to cool.
(Scott Kanowsky, Oliver Gray contributed to this report.)
