Revised data showed US inflation continued to cool, helping the S&P 500 close above 5,000 for the first time.
At the close of trading on February 9, the S&P 500 index increased 0.5% to 5,026 points. The DJIA decreased 0.14% to 38,671 points. Meanwhile, the Nasdaq Composite increased 1.2%.
For the week, the S&P 500 rose 1.4% and the Nasdaq added 2.3%. Both indexes have gained for five straight weeks and 14 of the last 15 weeks.
"At the end of the day, we got some good economic news. The market responded to that," Dana D'Auria, chief investment officer at Envestnet, told CNBC.
Brokers on the floor of the New York Stock Exchange (NYSE). Photo: Reuters
The US Bureau of Labor Statistics released revised figures on February 9 showing that the country's consumer price index rose 0.2% in December compared to the previous month. That pace was down from the preliminary estimate of 0.3%. Core inflation, which excludes food and energy prices, remained unchanged.
"This will give the Fed more confidence that economic growth and employment will not push inflation higher," said Ellen Zentner, an economist at Morgan Stanley. January CPI will be released next week.
Strong corporate earnings, subdued inflation and a buoyant economy have helped U.S. stocks accelerate early this year. The S&P 500 briefly topped 5,000 on Feb. 8, but then lost ground by the end of the session. The S&P 500 topped 4,000 in April 2021, when the Federal Reserve cut interest rates to near zero to support the economy during the pandemic.
"A close above this level will certainly attract a lot of attention and increase FOMO (fear of missing out). Round numbers like 5,000 are often psychological resistance or support levels for the market," said Adam Turnquist, strategist at LPL Financial.
Shares of U.S. tech giants led the gains yesterday. Nvidia and Alphabet both rose more than 2%. Cloud computing company Cloudfare even jumped 19% on strong earnings. Last month, Nvidia, Microsoft, Meta Platforms and Alphabet all closed at record highs several times.
Ha Thu (according to Reuters, CNBC)
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