The New York stock markets ended on a mixed note on Friday as the S&P 500 reached a historic milestone, surpassing 5,000 points for the first time.
The result was fueled by a significant rally in big tech stocks, while the Nasdaq saw a more than 1% increase.
On the other side, the Dow Jones fell. It lost ground because of drops in sectors like energy, manufacturing, and retail, including Chevron, Caterpillar, and Walgreens.
Lower consumer inflation figures for December lifted spirits but didn’t alter views that the Federal Reserve would wait to reduce interest rates.
At close, the S&P 500 was up by 0.57%, hitting a record 5,026.61 points. It had crossed 5,000 points the day before but didn’t keep it at the end.
The Nasdaq increased by 1.25% to 15,990.66 points, briefly reaching 16,000 for the first time since November 2021.
The Dow Jones fell by 0.14% to 38,671.69 points. The S&P 500 slightly rose by 0.04% over the week, the Nasdaq by 1.37%, and the Dow Jones by 2.31%.
Microsoft’s stock went up by 1.56%, pushing its market value to $3.12 trillion and overtaking Apple, which had hit $3.09 trillion in July.
No other US company had ever surpassed $3.1 trillion before.
Tech firms like Nvidia, which surged 3.58%, benefited from news of a new division for designing cloud computing chips, including AI processors.
This news buoyed the tech sector, including Amazon and Alphabet, with gains of 2.71% and 2.12%, respectively. Apple’s rise was more modest at 0.41%.
In the Dow Jones, Walt Disney shares dropped by 1.95%, pulling back from the previous day’s earnings-driven surge.
Caterpillar and Walgreens also dragged the index down with their losses.
Market’s response to economic indicators
PepsiCo’s stock fell by 3.55% after it reported a slight revenue dip to $27.85 billion in the fourth quarter, missing expectations for growth.
The US Consumer Price Index for December 2023 was adjusted down slightly, signaling a continued easing of inflation without big shocks. January’s inflation data is awaited next week.
These developments matter because they reflect the market’s response to economic indicators, company performances, and geopolitical events.
The mixed results show the varying impacts on different sectors, highlighting the complexity of financial markets.