Historic breakthrough: the S&P 500 breaks the 5,000-point mark
On Friday, the S&P 500 celebrated a historic milestone when it surpassed the 5,000-point mark for the first time. This extraordinary achievement was the result of a series of encouraging inflation reports and robust corporate earnings that supported the market and allowed the index to strengthen for the fifth week in a row.
Investors were particularly encouraged by strong corporate results and a slight decline in inflation, which led to further gains S&P 500. Corporate earnings reports showed that roughly 81% of S&Pcompanies beat analysts' expectations, comparable to quarterly results since 1994.
"We continue to see very good economic news and the market is reacting positively to it. The longer this trend continues, the more the market seems to be reaching a plateau."
Dana D'Auria, co-chairman of investment firm Envestnet
Also contributing to the market's further strengthening was the news of a lower December consumer price index, which was revised up to a 0.2% increase from the previously reported 0.3% rise, and core inflationfigures, excluding food and energy, were flat. The report helped ease inflation concerns and boosted the index.
"A close above this important threshold is sure to attract attention and stoke fears of missing out (FOMO). In addition to potentially boosting sentiment, round numbers like 5,000 often have an impact on the psychological stability of the market and can serve as support or resistance as well."
Adam Turnquist, Chief Technical Strategist at LPL Financial
Overall, the market held a positive bias. The S&P 500$^GSPC+0.0% breaking the 5,000 point mark boosted investorconfidence and suggests continued growth in 2024.
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