Traders work on the floor at the New York Stock Exchange on Jan. 29, 2024.
Brendan Mcdermid | Reuters
The Nasdaq Composite advanced Thursday, rising to its first closing record since November 2021.
The Nasdaq jumped 0.9% as tech stocks and chips rallied into the close. The S&P 500 also popped to a record close, rising 0.52%. The Dow Jones Industrial Average ticked higher by 0.12%.
Thursday’s session caps off February trading and a fourth straight positive month for Wall Street, despite a string of declines raising questions around the sustainability of the AI-driven rally. The Nasdaq led the pack with a 6.12% gain. The S&P 500 climbed 5.17%, while the Dow added 2.22% for its first four-month winning streak since May 2021.
Data showed the Federal Reserve’s preferred measure of inflation was stubbornly above the central bank’s target in January, but at least didn’t exceed Wall Street forecasts. There were also signs that consumer spending remains robust.
The core personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, increased by increased 0.4% for the month and 2.8% from a year ago. That matches Dow Jones estimates. Headline PCE, which includes food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%.
“This morning’s data is a sigh of relief for bulls, who were worried inflation was going to reaccelerate and cause the Fed to put off rate cuts for a much longer time,” said Independent Advisor Alliance chief investment officer Chris Zaccarelli. “At least for today, it should be all systems go and buyers should re-emerge.”
Personal income rose 1% month-over-month in January, well above the forecast for 0.3%.
Meanwhile, pending home sales posted a surprise drop in January amid swings in mortgage rates. Pending sales declined 4.9% for the month, much worse than the 2% projected increase from the Dow Jones consensus.
Snowflake shed 18.4% after announcing the retirement of its CEO and sharing disappointing product revenue guidance. Meanwhile, Okta popped nearly 23% on strong results.
New York Federal Reserve Bank President and CEO John Williams is also slated to moderate a discussion in the evening.
Source Agencies
