US Stock Market Extends Weekly Gains on Positive Economic Data

The US stock market continued to advance, extending its weekly gains as positive economic data provided a boost to investor sentiment. The Dow Jones, S&P, and Nasdaq Composite indexes all made modest gains, with the S&P 500 and Nasdaq Composite both climbing over 1% for the week.

Encouraging economic data played a key role in driving the market higher this week. The most recent data release, the Personal Consumption Expenditures (PCE) index for December, showed that inflation remained in line with expectations. While the annualized figure was slightly lower than anticipated, the PCE index is closely monitored by the Federal Reserve to gauge inflation trends.

The positive economic sentiment was further supported by the release of strong Gross Domestic Product (GDP) figures for the fourth quarter. This reinforced investors’ optimism that the economy is on track and may avoid a severe downturn.

However, the gains in the market were tempered by disappointing earnings reports from some notable companies. Intel shares plummeted by more than 10% after providing lower-than-expected guidance, while Advanced Micro Devices saw a more than 5% slide due to weak guidance for its fiscal third quarter. Electric vehicle maker Lucid Motors also faced selling pressure after reporting concerns for 2024.

Luxury goods companies, including LVMH (Louis Vuitton, Moët & Chandon, Hennessy), reported strong sales figures, lifting their stock prices. LVMH shares surged by 7% following the positive results, and other luxury stocks such as Tiffany & Co., Estée Lauder, and Ralph Lauren also saw gains.

In the tech sector, companies like Apple, Microsoft, Netflix, Applied Materials, Lam Research, NVIDIA, and Comcast‘s NBCUniversal all saw significant boosts. Comcast’s subsidiary NBCUniversal reported strong subscriber numbers, driving a surge in its stock price, while semiconductor equipment companies like Applied Materials and Lam Research posted solid earnings.

Finally, JPMorgan Chase made headlines as the bank announced that several executives are being considered as potential successors to CEO Jamie Dimon. The exact timeline for Dimon’s departure remains uncertain, but this development suggests that the bank is preparing for leadership changes in the near future.