Home Forex S&P 500 closes at all-time high Friday on risk-on rally led by technology sector

S&P 500 closes at all-time high Friday on risk-on rally led by technology sector

by SuperiorInvest


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  • US indexes rose on Friday, led by chip makers.
  • Investors focused on tech stocks to shake off the Fed’s tantrums.
  • Markets crash as the US dollar, US stocks and Treasury yields rise.

Standard & Poor’s hit a new all-time high of $4,839.58 on Friday as stocks broadly rallied as investors piled bets on future gains in large-cap technology stocks, with chipmakers loosely linked to AI technology projects the main drivers.

Money markets are largely reeling from months of reluctantly giving up ground on expectations of a rate cut by the Federal Reserve (Fed). According to CME’s FedWatch tool, bets on FX swaps are pricing in a nearly 40% chance of a rate cut at the Fed’s March meeting, down significantly from a more than 70% chance a month ago.

Fed officials are dampening market expectations for an increased pace of rate cuts by the US central bank, and markets finally seem to be listening as US economic data continues to beat market forecasts, printing ever higher and healthier than investors had hoped for. markets crave cheaper loans and borrowing.

US consumer sentiment improved to the best since July 2021, according to the University of Michigan Consumer Sentiment Survey. UoM is 5 years old Consumer inflation expectations The survey also fell to a record low in January at 2.8% from December’s 2.9%.

As the US economy continues to grow healthy and US consumers expect inflation to remain above the Fed’s 2% target for the foreseeable future, the market hopes that Fed Rate cuts are unlikely to see a happy conclusion as money markets are now leaning towards the FOMC meeting in May as the possible start of another tapering cycle.

The Dow Jones Industrial Average (DJIA) also rose to an all-time high, touching $37,931.36 and ending at $37,863.80 on Friday, climbing over 395 points and gaining 1.05% on the day.

The NASDAQ Composite and NASDAQ 100 hit their own all-time highs on Friday, with the NASDAQ Composite climbing 255.32 to $15,310.97 for a 1.7% gain on Friday, while the NASDAQ 100 soared 1.75% to end at 1 .87.31 points more than $16.31

S&P 500 Technical Outlook

The main S&P 500 index climbed nearly one and a quarter percent to hit an all-time high, ending Friday at $4,839.81, up 58.87 points on the day.

The short-term bullish momentum in the stock indexes sent the S&P well above any technical zones to record highs. The S&P could fall more than 8% and still be in bullland above the 200-day simple moving average (SMA) near $4,400.00, and the nearest technical barrier is at the 50-day SMA near $4,650.00.

S&P 500 hourly chart

S&P 500 Daily Chart

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