US Stocks: US Stocks: S&P 500 opens above 5,000 after revised inflation data
A string of positive returns and optimism surrounding artificial intelligence has pushed the S&P 500 and blue-chip Dow to record levels this year. The tech-heavy Nasdaq is about 2.3% off its peak.
Monthly U.S. consumer prices rose less than initially expected in December, revised government data showed on Friday.
The annual revision of CPI data released by the Department of Labor’s Bureau of Labor Statistics showed the consumer price index rose 0.2% in December, compared to the 0.3% reported the previous month. However, the November data was revised to show CPI rising 0.2%, up from the previous estimate of 0.1%.
“Today’s revisions are much more relaxed than last year,” said Art Hogan, chief market strategist at B Riley Wealth. “The market’s biggest concerns about the actual data are much lessened now that we know what the revised numbers look like.”
Curbing the gains, the yield on the benchmark 10-year U.S. Treasury note rose to 4.18%, reversing an earlier decline. Strong economic data and hawkish comments from Federal Reserve policymakers in recent weeks have led the U.S. central bank to begin cutting interest rates in March. Investors are now awaiting January consumer price data due to be released next week to get a clearer picture of where interest rates are headed this year.
At 9:44 a.m. ET, the Dow Jones Industrial Average fell 20.24 points (0.05%) to 38,706.09, the S&P 500 Index rose 7.42 points (0.15%) to 5,005.33, and the Nasdaq Composite Index rose 53.27 points (0.34%). has risen. %, 15,846.99.
The three major indexes posted their fifth straight week of gains as upbeat earnings reports offset unease about the path of interest rates and concerns about the commercial real estate exposure of U.S. community banks.
The technology sector rose 0.4% and led sector gains. Nvidia rose 1.5% after Reuters reported the chipmaker was building a new division focused on designing custom chips for cloud computing companies and other companies, including advanced artificial intelligence processors.
PepsiCo lost 3.4% after fourth-quarter sales fell short of expectations as multiple price increases dampened demand for its juices and Lay’s chips.
Pinterest plunged 11.6% after predicting first-quarter sales would be significantly below Wall Street estimates, while Cloudflare rose 20.1% after forecasting positive first-quarter sales and profits.
With U.S. earnings season more than halfway through, more than 80% of S&P 500 companies have beaten fourth-quarter profit estimates, according to LSEG data. In a typical quarter, 67% of companies exceed expectations.
Advancing issues outnumber decliners by a 1.61-to-1 ratio on the NYSE and a 1.67-to-1 ratio on the Nasdaq.
The S&P recorded 27 new 52-week highs and two new lows, while the Nasdaq recorded 74 new highs and 19 new lows.
(You can now subscribe to ETMarkets WhatsApp channel)
Download the Economic Times news app to get daily market updates and real-time business news.
Subscribe to The Economic Times Prime and read Economic Times ePaper Online and Sensex Today.
Top trending stocks: SBI stock price, Axis Bank stock price, HDFC Bank stock price, Infosys stock price, Wipro stock price, NTPC stock price.
