por admin » Mié Feb 07, 2024 1:56 pm
S&P 500 rises, nears 5,000 level: Live updates
Samantha Subin
Brian Evans
The economy has been ticking along without needing a rate cut, says Moneta's Aoifinn DevittWATCH NOW
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The economy has been ticking along without needing a rate cut, says Moneta’s Aoifinn Devitt
The S&P 500 rose Wednesday and edged closer to the 5,000 level for the first time as investors parsed through another slate of quarterly results.
The broad-based index, which first breached the 4,000 level in April 2021, added 0.8%, while the Nasdaq Composite jumped about 1%. The Dow Jones Industrial Average rallied 220 points, or 0.55%.
“It’s earnings driven, but it’s bleeding over into other companies that may not have announced,” said Kim Forrest, Bokeh Capital’s chief investment officer, of Wednesday’s moves. “They’re getting swept on the coattails. Some of what we’re experiencing this year is people don’t want to be left behind like they were last year.”
Stocks rallied as investors weighed a fresh batch of strong corporate profits and major technology behemoths continued their march higher. Enphase Energy popped 16% after the solar company said its inventory glut may be approaching a bottom, while automaker Ford gained 4.7% after beating Wall Street’s fourth-quarter estimates and issuing higher-than-expected guidance.
A better-than-expected earnings season, coupled with upbeat guidance, has been a source of strength for the market in recent weeks, signaling that the consumer is hanging in there and that the economy remains resilient even as rates remain elevated.
It comes even as rate cut expectations for 2024 retreat following cautious commentary from the central bank, with Fed Chair Jerome Powell signaling that investors will have to wait longer than previously thought for a pivot. Minneapolis Federal Reserve President Neel Kashkari said Wednesday that he anticipates only two to three rate cuts this year.
In other news, New York Community Bancorp shares were volatile during afternoon trading after Moody’s downgraded its credit rating to junk. Shares have fallen about 35% in February alone as the bank posted a surprise fourth quarter loss and slashed its dividend amid rising commercial real estate losses.
Another slate of Fed speakers is on tap Wednesday, including remarks from governors Michelle Bowman and Adriana Kugler. That’s followed by quarterly results from Walt Disney, PayPal and Arm Holdings after the bell.