New Highs in Stocks: S&P 500 Nears 5,500, Nasdaq Above 20,000

The rally in stock markets doesn’t seem to end, with S&P 500 climbing above 5,500 points, while NASDAQ surged above 20,000 as buyers kept on pushing despite a flat start to the day. Risk sentiment remained positive today, as the European Election hype abated, pushing stock markets and commodities higher.

Today’s performance in the S&P 500 and Nasdaq Composite reflects a resilient bullish sentiment among investors, buoyed by favorable inflation data and a cautiously optimistic interpretation of the Fed’s hawkish stance. The S&P 500’s 1% rise and the Nasdaq’s breakthrough above 20,000 are positive indicators for the continuation of the upward trend. Market participants will likely continue to monitor economic data and Fed communications closely for further cues on market direction.

S&P 500 Chart Daily – Within Touch of 5,500

S&P 500 and Nasdaq Composite Performance Recap

Overview:

• S&P 500: The S&P 500 had a flat opening today after a strong week, driven by lower inflation statistics and a hawkish stance from the Federal Reserve.
• Nasdaq Composite: The Nasdaq Composite had an impressive run last week, setting five consecutive closing record highs before a slight pullback below 20,000.

Last Week’s Performance:

• S&P 500: Despite a winning streak, the S&P 500 fell 1.6% last week, closing Friday with a slight loss that ended a four-day record-setting run.
• Nasdaq Composite: The Nasdaq Composite maintained its momentum with consecutive record highs, though it dipped below the 20,000 mark by the end of the week.

Today’s Performance:

• S&P 500:
  • Initial Flat Start: The index began the day flat, reflecting caution among investors after the previous week’s strong performance.
  • Return of Buyers: As the day progressed, buying activity picked up, pushing the S&P 500 up about 1% by the end of the session. This indicates renewed investor confidence and a continuation of the upward trend.
• Nasdaq Composite:
  • Breaching 20,000 Level: After falling below 20,000 last week, the Nasdaq Composite rebounded strongly today.
  • Rising Above 20,000: Today’s rally helped the Nasdaq surpass the significant 20,000 level, reflecting strong momentum and investor enthusiasm for tech and growth stocks.

Market Closing Summary for the Day:

US Markets:

• S&P 500: +0.8%
  • The S&P 500 continued its upward trend, closing the day with a significant 0.8% gain. This reflects renewed investor confidence and buying activity after a cautious start.
• Nasdaq Composite: +1.0%
  • The Nasdaq Composite had a strong performance, rising by 1.0%. This gain helped the index breach and stay above the significant 20,000 level, underscoring the robust demand for technology and growth stocks.
• Dow Jones Industrial Average (DJIA): +0.5%
  • The DJIA also closed higher, with a 0.5% gain. This increase indicates a positive sentiment among investors, although the rise was more modest compared to the S&P 500 and Nasdaq.
• Russell 2000: +0.7%
  • The Russell 2000 index, which tracks smaller-cap stocks, closed with a 0.7% gain, reflecting broader market strength and investor interest in smaller companies.

Canadian Market:

• Toronto TSX Composite: -0.3%
  • The Toronto TSX Composite index was the exception among major indices, closing down by 0.3%. This decline suggests that the Canadian market faced specific challenges or headwinds that differed from the positive sentiment in US markets.

S&P 500 Live Chart