⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

S&P 500 index marks a new milestone amid high appetite for risk

U.S. stocks rallied strongly in the last trading session of the week following the revision of December’s US inflation estimate, which was lower than initially reported. The S&P 500 index ended above the crucial 5,000 barrier as positive economic and positive earnings in the world’s largest economy continued to flow in.

The S&P continued its march beyond 5,000 on Friday as megacap technology firms saw further gains. Nvidia had a 3.6% increase, while Alphabet added over 2%. Strong earnings caused Cloudflare to soar to a 19.5% increase, which in turn stimulated the entire cloud industry. Additionally, semiconductor stocks increased; the VanEck Semiconductor ETF had a 2.2% increase.

Broker Review Regulators Min Deposit Website
🥇 Read Review ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA USD 100 Visit Broker >>
🥈 Read Review FMA, FSA USD 50 Visit Broker >>
🥉 Read Review FSCA, CySEC, DFSA, FSA, CMA USD 0 Visit Broker >>
4 Read Review SFSA, FSCA, CySec* USD 5 Visit Broker >>
5 Read Review FCA, CySEC, FSCA, SCB USD 100 Visit Broker >>
6 Read Review FCA, FINMA, FSA, ASIC USD 0 Visit Broker >>
7 Read Review CySEC, FCA, FSA, FSCA, Labuan FSA USD 100 Visit Broker >>
8 Read Review Not Regulated 0.001 BTC Visit Broker >>
9 Read Review ASIC, CySEC, FSCA, CMA USD 100 Visit Broker >>
10 Read Review SVGFSA USD 5 Visit Broker >>

Undoubtedly, a closing above this widely monitored mark will make headlines and exacerbate feelings of fear of missing out. Round numbers like 5,000 might provide the market with a psychological zone of support or resistance in addition to possibly boosting sentiment.

Sentiment was also improved by an adjustment downward in the consumer price index for December. The administration changed the number from the 0.3% rise that was first published to a 0.2% increase. With food and energy excluded, core inflation figures remained unchanged. Next week will see the release of the CPI data for January.

The Nasdaq gained 2.3% and the S&P rose 1.4% for the week. The Dow ended the day unchanged. The five consecutive winning weeks and the fourteenth positive week in a row were achieved by all three main averages.

Currently accounting for almost 30% of the S&P 500 index are the technology stocks collectively referred to as the “Magnificent Seven,” which include Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta, and Tesla.

More than three-quarters of the S&P 500’s overall return for the previous year came from them. Contrary to what many observers had projected, the market rally in 2024 has become even more concentrated as market leadership has grown.

The strong earnings season, declining inflation figures, and a robust economy have propelled the market’s surge in 2024. Additionally, it helped the S&P close above the 5,000 mark, which it had previously touched on Thursday’s session. In April 2021, the index crossed 4,000 for the first time.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles