S&P 500 Hits Record High as Megacaps and Chip Stocks Boost Bull Market

The benchmark S&P 500 reached a new record high, indicating a continuation of the bull market. The index hit an intraday high of 4,868.41 points, thanks to the performance of megacap and chip stocks. Companies such as Alphabet, Meta Platforms, and Apple saw gains between 0.5% to 1.1%. Meanwhile, chip stocks Nvidia, Broadcom, and Micron Technology rose between 0.6% to 2%. The Philadelphia SE Semiconductor index also hit an all-time intraday high.

During this period of volatility, experts caution that an economic slowdown could cap market growth, and the Federal Reserve may maintain its current stance on interest rates longer than expected due to ongoing inflation concerns. Traders have adjusted their expectations for interest rate cuts accordingly. Focus will also be on key economic indicators, including the personal consumption expenditure (PCE) index, S&P Global PMI readings, and fourth-quarter GDP figures. These will help investors gauge the future policy decisions of the Federal Reserve.

This week, several major companies are set to report earnings, including Netflix, Tesla, Abbott Laboratories, Intel, and Johnson & Johnson. These reports will provide insights into the overall health of corporate America. Additionally, United Airlines Holdings, Brown & Brown, and Zions Bancorp are among the companies announcing their earnings after market close.

Recent data from LSEG indicates that 84.6% of S&P 500 companies have exceeded earnings expectations so far. However, this is lower compared to the previous week’s beat rate of 93.1%. The Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq Composite all recorded gains, while utility stocks declined by 0.9%. Notable market movements include the slump of in-store sales for The Buckle, the 10.2% drop in Gilead’s stock after a failed late-stage study, and SolarEdge Technologies’ workforce reduction plan.