S&P 500 Ends Near Record As Tech Pushes On – US Market Wrap

Another rally in technology shares lifted stocks after an AI-driven selloff, with investors positioning ahead of economic data that will help shape expectations for Federal Reserve policy. Gold climbed above $5,000 an ounce, while the dollar weakened.

After a surge late last week that added about $1 trillion to the S&P 500’s market value, the index continued to advance and moved closer to record highs. Technology stocks that had been at the center of a sharp decline extended their rebound. A gauge of chipmakers rose 1.4%, while an exchange-traded fund tracking software stocks posted a second straight gain, bringing its two-day advance to nearly 7%. Oracle jumped 9.6%.

Alphabet is set to raise $20 billion through a US dollar bond sale to help fund its AI expansion, exceeding expectations of $15 billion. The company is also marketing what would be its first bond offerings in Switzerland and the UK, including a rare issuance of 100-year bonds.

Traders are preparing for a heavy week of economic releases, including key reports on employment and inflation. Wednesday’s jobs report is expected to show payrolls increased by 69,000 in January, with the unemployment rate holding at 4.4%. The release is also set to include historical revisions that are expected to show a sizable downward adjustment to payroll growth through March 2025. On Friday, economists will look to the consumer price index for further signs that inflation is easing, while Tuesday’s data are forecast to show solid retail sales.

Moves in the Treasury market were muted after an earlier decline linked to reports that Chinese regulators were urging banks to scale back exposure to US government debt due to market risks.

The S&P 500 rose 0.5%. The Dow Jones Industrial Average held above 50,000. The Russell 2000 gained 0.7%. The yield on the 10-year Treasury was little changed at 4.20%, while the dollar fell 0.6%.

Bitcoin hovered near $70,000. Oil prices climbed after the US advised ships to avoid Iranian waters when transiting the Strait of Hormuz. UK assets rebounded from session lows as cabinet members voiced support for Prime Minister Starmer. Japanese stocks jumped to a record after Prime Minister Takaichi secured a historic election victory.