Stock Market Today: Stocks firmly higher, S&P 500 hits record as tech extends gains

Updated at 4:15 PM EST Rob Lenihan

Stocks roared to the finish line Friday, with the S&P 500 closing at a record high, as the market was bolstered by the tech sector.

The S&P 500 gained 1.23% to end at 4,839, beating its January 2022 intraday high of 4,818.62 and its closing record of 4,796.56.

The Dow Jones Industrial Average surged 395 points, or 1.05%, to 37,863, while the tech-heavy Nasdaq rose 1.70%.

Advanced Micro Devices  (AMD)  rose 7.1% and Nvidia  (NVDA)  climbed 4.2% were among the tech stocks ending the week on a high note.

In economic news, the University of Michigan’s survey of consumer confidence powered higher In January to the best level in more than two and a half years, while the poll’s subindex of inflation expectations showed the one-year forecasts fell to a fresh 3-year low of 2.9%.

“The improvement was widespread, as consumer views on current economic conditions and expectations for the future both improved notably during the month,” Sam Millette, director of fixed income for Commonwealth Financial Network. “Encouragingly for the Federal Reserve consumer inflation expectations fell in January, with 1 year inflation expectations falling to a 3-year low in January.”

Home sales data, meanwhile, fell 1% to a seasonally-adjusted 3.78 million units, which prices rising to a December record high of $382,600.

Overall existing home sales in 2023 were down 19% on the year at 4.18 million units, the lowest since 1995.

“High mortgage rates, lack of supply, and rising home prices all served as headwinds for home sales throughout the course of the year,” Millette said.

Updated at 2:02 PM EST

Fresh record highs

The S&P 500 is hovering at record highs in late-Friday trading, with the benchmark up 51 points, or 1.06% on the session to take the broadest measure of U.S. shares to a fresh-all time high of 4,832.36 points.

Updated at 12:59 PM EST

Microsoft on deck

Microsoft  (MSFT) , now the world’s most-valuable company, will kick-off the first slate of Magnificent 7 tech earnings next week with a December quarter update that is likely to highlight both the near-term potential of its AI ambitions as well as the supply constraints that are likely to keep profit forecasts muted.

Microsoft shares were last marked 0.6% higher on the session, taking their January gain to around 6.9%, and changing hands at $396.12 each.

The Nasdaq, meanwhile, was last marked 150 points, or 1% higher on the day, with the S&P 500 adding 37 points, or 0.7%.

Updated at 11:44 AM EST

Holding gains

Stocks are holding onto earlier gains heading into the mid-day session, with the S&P 500 marked 18 points, or 0.38% higher and the Nasdaq up 75 points, or 0.5%. The Dow is up 136 points.

On the bond side, investors seem to be focused on the better-than-expected consumer sentiment data, as opposed to the softer inflation expectations, with benchmark 10-year notes rising to 4.165% and 2-year notes trading at 4.408%.

Updated at 10:07 AM EST

Fading inflation prospects

The University of Michigan’s closely-tracked survey of consumer confidence powered higher In January to the best level in more than two and a half years, while the poll’s subindex of inflation expectations showed the one-year forecasts fell to a fresh 3-year low of 2.9%.

Home sales data, meanwhile, fell 1% to a seasonally-adjusted 3.78 million units, which prices rising to a December record high of $382,600.

Overall existing home sales in 2023 were down 19% on the year at 4.18 million units, the lowest since 1995.

Stock reaction was muted, with the S&P 500 up 15 points, or 0.32%, and the Nasdaq rising 73 points, or 0.46%.

Updated at 8:51 AM EST

Spirited comeback

Spirit Airlines  (SAVE)  shares are soaring in pre-market trading after the discount carrier lifted some of its fourth quarter earnings metrics and is reportedly urging JetBlue  (JBLU)  to appeal the decision to scrap the pair’s $3.8 billion merger.

Stock Market Today

Chip stocks are looking to build on their recent gains again, with both Nvidia  (NVDA)  and Advanced Micro Devices  (AMD)  ready to test all-time highs as investors sustain bets on AI demand underscored by Taiwan Semiconductor’s  (TSMWF)  robust 2024 forecast. 

Those gains have helped lift the Nasdaq into positive territory for the year as of Thursday’s close, with premarket gains indicating another session of solid gains.

With little on the economic or earnings calendar for Friday, investors are likely to focus on next week’s parade of December-quarter updates, with around 75 S&P 500 companies set to report. 

Collectively, fourth-quarter S&P 500 profits are estimated to come in 4.4% higher than in the year-earlier period, to a share-weighted $467.1 billion. They’re seen rising 7% over the first three months of this year. 

In the bond market, benchmark 10-year Treasury note yields were holding at 4.132% heading into the start of the New York trading session following yesterday’s solid auction of 10-year inflation-protected notes. Benchmark 2-year notes were pegged at 4.363%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, fell 0.16% to 103.3368 but remained on track for its second straight weekly gain.

On Wall Street, the stock market’s key volatility gauge, CBOE Group’s VIX index, fell 7.8% in the overnight session to $13.63, the lowest since Jan. 5.

Futures contracts tied to the S&P 500, which is down 0.64% for the year, are priced for a 28 point opening bell gain while those linked to the Dow Jones Industrial average are set for a 233 point advance. 

The Nasdaq, which is up 0.3% for the year, is set to open 140 points higher, paced by Apple  (AAPL) , Nvidia and AMD. 

In overseas markets, Europe’s Stoxx 600 was marked 0.2% higher in early Frankfurt trading, while Britain’s FTSE 100 added 0.41% in London.

Overnight in Asia, Japan’s Nikkei 225 ended 1.4% higher, snapping a three-day losing streak and hitting a fresh 34-year closing high of 35,963.27 points.

The regionwide MSCI ex-Japan benchmark, meanwhile, was marked 1.24% heading into the close of Friday trading.

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