Home News Index hits record high as tech stocks rise

Index hits record high as tech stocks rise

by SuperiorInvest

Key takeaways

  • The S&P 500 jumped 1.2% on Friday, January 19, 2024, and a rally in the technology sector helped the benchmark index close at its all-time high.
  • Semiconductor stocks added to recent gains amid a bullish outlook on opportunities in the AI ​​space.
  • Health insurer stocks extended losses recorded in the previous session when Humana cut its profit forecast, citing higher medical costs.

U.S. stocks regained their momentum in the second half of the four-day trading week, as the S&P 500 advanced 1.2% to hit its all-time closing high on Friday.

Strength in the technology sector helped the Nasdaq gain 1.7% and the Dow closed the session with gains of 1.1%.

Semiconductor stocks have been a key driver of the recent rally, and a bullish forecast from Taiwan Semiconductor Manufacturing (TSM) earlier in the week fueled optimism about artificial intelligence (AI) applications. Advanced Micro Devices (AMD) led the way for the S&P 500 on Friday, jumping 7.1%.

AMD wasn’t the only chipmaker that increased profits. Broadcom (AVGO) shares rose 5.9% to an all-time high after Goldman Sachs restored coverage on the stock with a buy rating and a $1,325 price target, forecasting strong growth for the computing segments custom and high-speed networks from Broadcom.

Shares of The Travelers Companies (TRV) also hit an all-time high on Friday, soaring 6.7% after the insurance provider reported a 101% year-over-year increase in core revenue in the fourth quarter. Higher premiums and investment income, along with lower payouts, drove the strong performance.

Shares of PayPal (PYPL) advanced 6.0%, adding to gains posted earlier in the week as CEO Alex Chriss discussed the payments provider’s commitment to profitable growth and innovation.

Health insurer stocks fell, extending losses recorded in the previous session after Humana (HUM) cut its profit outlook, citing higher medical costs. Molina Healthcare (MOH) shares fell 4.1%, marking the weakest performance in the S&P 500, while Centene (CNC) shares fell 3.2%. Other health insurance stocks also posted losses.

Dollar General (DG) shares fell 2.8% following reports that the discount retailer is the subject of a lawsuit over irregular pricing practices. The class action lawsuit filed in New York claims that the prices of merchandise in the company’s stores do not match the prices charged at the cash registers.

Shares of PPG Industries (PPG) fell 2.5% after the paint and coatings maker issued weaker-than-expected guidance. The company anticipates weakness in the DIY (do-it-yourself) market in the US and Canada during the first half of the year.

Source Link

Related Posts