Stock Market Hits Record High After Revised Inflation Data
Stock Market Reaches New Heights
The benchmark index soared past the 5,000 mark, hitting a record high on Friday. This surge was fueled by minimal revisions in last year’s inflation figures, which has bolstered expectations of a potential interest rate cut by the U.S. Federal Reserve.
Positive Earnings and Optimism
Positive earnings and optimism surrounding artificial intelligence have driven both the S&P 500 and the Dow to historic levels this year. The tech-heavy Nasdaq is also on an upward trajectory, standing about 2.3% away from its peak.
Revised Inflation Data
New data revealed that U.S. monthly consumer prices rose less than initially estimated in December. The consumer price index rose 0.2% in December, while November’s data was also revised upwards, indicating increased stability in the market.
Market Analysis
Art Hogan, chief market strategist at B Riley Wealth, commented on the revised numbers, stating that today’s revisions are much more modest than they were last year, thereby alleviating concerns in the marketplace.
Market Trends
Despite gains in the stock market, the yield on benchmark reversed its earlier drop, rising to 4.18%. Traders’ bets on a potential interest rate cut by the U.S. central bank in March have also been affected by strong economic data.
Market Expectations
Investors are eagerly awaiting the release of January consumer prices data next week to gain a clearer picture of the potential interest rate trajectory this year.
Current Market Status
As of 9:44 a.m. ET, the was down 20.24 points, the S&P 500 was up 7.42 points, and the was up 53.27 points. Despite some jitters around the interest-rate path, the three main indexes are set for their fifth consecutive week of gains.
Industry Insights
- The tech sector led sectoral gains, with Nvidia rising 1.5% after reports of new business unit development.
- PepsiCo saw a 3.4% decrease after its fourth-quarter revenue fell short of estimates.
- Pinterest plunged 11.6% after forecasting first-quarter revenue below Wall Street estimates.
- Cloudflare rallied 20.1% after forecasting upbeat first-quarter revenue and profit.
Earnings Season
More than 80% of the S&P 500 companies topped profit estimates in the fourth quarter, according to LSEG data, marking a significant uptick from the usual quarter trends.
Market Statistics
Advancing issues outnumbered decliners on the NYSE and Nasdaq. The S&P index recorded 27 new 52-week highs, while the Nasdaq recorded 74 new highs and 19 new lows.
