Tech Rally Extends to Monday On Wall Street

Barry Adams
22 Jan, 2024
New York City

Benchmark indexes on Wall Street attempted to build on the previous week's gains after the tech stock rally pushed indexes into the positive zone.

The S&P 500 index and the Nasdaq Composite index gained sharply in Friday's trading after AI-related enthusiasm led semiconductor stocks to new highs.

Investors have shifted their attention to the latest data on the economy, labor market, and inflation after weeks of debating about the number and timing of rate cuts this year.

The S&P 500 index jumped to a new intraday and end-of-day high after two years in Friday's trading.

Last week, U.S. market indexes advanced amid heightened volatility, and investors focused on a slew of positive economic data in the last two weeks.

Moreover The retail sales report in December signaled resilient consumer spending, adding to the strong labor market conditions and weakening inflation level reported in the previous two weeks and providing another lift to market indexes.

However, existing home sales dropped to a 13-year low in December amid high home prices and elevated mortgage rates as buyers struggled to find properties.

On the international front, the Bank of Japan is scheduled to announce its rate decision on Tuesday, and the European Central Bank is set to announce its monetary policy details on Thursday.

Both central banks are expected to hold rates steady, and the People's Bank of China held its reference rates steady today.

The central bank left its one-year loan prime rate at 3.45% and the 5-year reference rate used for mortgage loans at 4.2%.

The ongoing property market woes and the lack of strong policy action from the People's Bank of China pushed the Hang Seng index down more than 2% and extended 2024 losses to 10%.

 

U.S. Indexes and Yields

The S&P 500 index increased 0.4% to 4,889.75, and the Nasdaq Composite rose 0.7% to 15,301.028.

The yield on 2-year Treasury notes increased to 4.39%. 10-year Treasury notes advanced to 4.09%, and 30-year Treasury bonds edged up to 4.30%.

WTI crude oil increased $0.20 to $73.45 a barrel, and natural gas prices decreased 14 cents to $2.37 a thermal unit.

Gold increased by $1.25 to $2,027.17 an ounce after declining in the previous week following the general strength in the U.S. dollar.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.13.

 

U.S. Stock Movers

Boeing decreased 1.3% to $212.15 after the Federal Aviation Administration expanded its inspection of door plug design on the 737 900-ER.

The FAA ordered an investigation after, earlier in the month, a 737 Max 9 plane used by Alaska Air Flight blew off a door midflight.

The government agency expanded the probe from the 737 Max 9 because the same door plug design is used in the 737 900-ER model.

Macy's Inc. increased 4.3% to $18.39 after the department store chain rejected a $5.8 bid by a consortium of investors, citing the offer was not financially attractive and lacked credible financing.

Ark House and Brigade Capital Management proposed to acquire shares in the company for $21 per share.

Archer Daniels-Midland plunged 15% to $58 after the company said it placed its chief financial officer, Vikram Luthra, on administrative leave amid an accounting practices investigation.

The company also offered a weaker-than-expected fourth-quarter earnings outlook.