S&P 500 Closes Higher for a Sixth Day, Powered by Strong GDP Data

Stock Market01/25/2024Mr. SmithMr. Smith
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Key Points

  • S&P 500 achieves sixth consecutive day of gains, hitting a new all-time closing record.
  • U.S. Gross Domestic Product (GDP) data beats expectations, showing a robust 3.3% growth in the fourth quarter.
  • Technology sector's weight in the S&P 500 reaches its highest level since 2000, surpassing 30%.

The S&P 500 continues its winning streak, closing higher for the sixth straight day, reaching a new all-time high of 4,894.16. Economic optimism prevails, driven by stronger-than-expected Gross Domestic Product (GDP) data, revealing a remarkable 3.3% growth in the fourth quarter. This positive economic indicator showcases resilience amid interest rate hikes from the Federal Reserve.

Both the S&P 500 and the Nasdaq Composite have maintained their upward trajectory, with the S&P 500 achieving its longest winning streak since November 2021. The market responds positively to data that exceeds expectations, indicating a robust and non-inflationary growth path for the economy.

However, the market experienced a setback as Tesla, a retail investor favorite, faced a significant sell-off. Despite this, the technology sector remains strong, constituting over 30% of the S&P 500, the highest since 2000. Megacap tech stocks like Nvidia, Advanced Micro Devices, and Microsoft contribute to the sector's dominance.

The overall positive trend in the market is supported by corporate earnings, with over 74% of reporting S&P 500 companies surpassing Wall Street expectations this earnings season. IBM, for instance, observed a notable surge of over 9% following better-than-expected financial results.

As the market navigates through various developments, the technology sector's significant weight and the overall economic growth trajectory remain pivotal factors shaping investment management and financial planning strategies.

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