Traders
work
on
the
floor
of
the
New
York
Stock
Exchange,
(NYSE)
in
New
York.
Brendan
McDermid
|
Reuters
The
S&P
500
closed
at
an
all-time
high
on
Friday
as
investors
returned
to
buying
equities
in
force
following
a
short-lived
market
stumble
to
start
the
new
year.
The
broad
market
index
rose
1.23%
to
settle
at
4,839.81,
surpassing
both
the
prior
record
intraday
and
closing
highs from
January
2022.
Meanwhile,
the
Dow
Jones
Industrial
Average,
which
set
its
own
record
at
the
end
of
last
year,
added
395.19
points,
or
1.05%,
to
end
at
37,863.80.
The
Nasdaq
Composite
advanced
1.70%
to
15,310.97.
The
smaller,
more
tech-focused
Nasdaq-100
gained
1.95%
to
also
hit
a
record
high.
All
three
major
averages
are
now
in
positive
territory
for
2024,
with
the
30-stock
Dow
going
green
during
Friday’s
rally.
Following
a
19%
loss
in
2022,
the
S&P
500
roared
back
in
2023,
posting
a
24%
gain
as
the
economy
skirted
a
recession
that
many
had
expected
and
inflation
came
down
to
levels
that
allowed
the
Federal
Reserve
to
pause
its
interest
rate
hikes.
The
benchmark
came
close
to
reaching
a
record
following
a
forceful
fourth-quarter
rally,
but
ultimately
fell
short.
The
market
rally
paused
a
bit
to
start
2024
as
investors
took
some
profits
in
the
Big
Tech
leaders
like
Apple.
But
they
returned
to
buying
those
tech
leaders
in
recent
days.
Friday’s
milestone
confirms
that
the
stock
market
is
officially
in
a
bull
market
that
began
in
October
2022,
and
not
just
a
bounce
within
a
bear
market.
The
S&P
500
is
up
more
than
35%
since
that
low.
“In
the
mind
of
the
investor,
[companies]
leading
in
AI
or
having
a
product
set
that’s
differentiated
in
the
tech
space
are
very,
very
strongly
leading
the
market.
That’s
been
a
wave
that’s
persisted
throughout
the
remainder
of
last
year
and
into
2024,”
said
Matt
Stucky,
chief
portfolio
manager
at
Northwestern
Mutual
Wealth
Management.
The
tech
sector
gained
2.35%
on
Friday
and
more
than
4%
during
the
trading
week,
making
it
the
S&P
500’s
best-performing
sector
week
to
date.
Whether
the
broader
market
index
can
maintain
its
growth
momentum
in
2024
“is
going
to
be
a
question
of
whether
the
Fed
is
able
to
stick
a
soft
landing
or
not,”
said
Stucky.
He
noted
that
the
driver
of
the
S&P
500’s
growth
in
2023
was
tied
to
multiples,
rather
than
earnings.
“Multiples
rise
coming
out
of
economic
slowdowns,
because
investors
are
pricing
in
a
recovery.
If
that
recovery
doesn’t
materialize,
then
you
do
have
to
question
the
sustainability
of
not
only
holding
on
to
new
highs,
but
making
new
highs
beyond
that,”
Stucky
added.
Fresh
consumer
data
on
Friday
indicated
that
consumers
are
becoming
more
confident
on
the
economy
and
inflation.
The
University
of
Michigan’s
Survey
of
Consumers
showed
a
21.4%
year-over-year
jump
to
reach
its
highest
level
since
July
2021.
Insurance
company
Travelers
rose
6.7%
after
posting
an
earnings
beat.
Schlumberger
gained
2.2%
after
beating
on
top
and
bottom
lines,
and
Ally
Financial
surged
over
10%
after
reporting
strong
quarterly
results
and
a
sale
of
a
business
unit
to
Synchrony
Financial.
