S&P500 closes above 5,000 to end the week – US Market Wrap

Wall Street reached a milestone, with the S&P 500 surpassing 5,000 amid a resurgent rise in major tech and anticipation that the Federal Reserve will soon be able to lower rates, improving the outlook for corporate profits.

Just as Americans prepare for football’s biggest night, with tickets for Sunday’s Super Bowl setting new records, US stocks scored a victory of their own, reaching another all-time high. Emboldened by bets on a soft landing and the power of artificial intelligence, equities continued to push forward, defying doomsayers and warnings about an overextended market.

A few days before the major consumer price index, investors breathed a sigh of relief as a government report – which is typically ignored by markets – confirmed inflation progress until the end of 2023.

In the immediate aftermath of the data, Treasuries rose – but quickly reversed that move. The two-year yield went back to levels seen before the Fed’s December “pivot.” Fed Bank of Atlanta President Raphael Bostic said he is “laser focused” on returning inflation to target, while his Dallas counterpart Lorie Logan said she sees no need to cut rates.