Tech surge propels Wall Street to record highs

Wall Street experiences a significant rally, driven by the strong performance of the technology sector

Wall Street stocks witnessed a substantial rally this Friday, primarily driven by the robust performance of the technology sector. Both the S&P 500 and Dow Jones achieved historic milestones, setting new records amid the surge.

The broad-based S&P 500 showcased a notable climb of 1.2 percent, concluding the day at an impressive 4,839.81. This achievement marked a significant breakthrough, surpassing its previous all-time high established back in 2022.

Simultaneously, the Dow Jones Industrial Average experienced a commendable uptick of 1.1%, reaching an unprecedented 37,863.80, reaffirming the strength of the current bullish momentum. The tech-heavy Nasdaq Composite Index mirrored this positive trend, surging by 1.7% to cap the day at an impressive 15,310.97.

Analyst Adam Sarhan of 50 Park Investments pointed to the ongoing dominance of tech stocks in propelling the market to new heights. He highlighted the explosive performance of SMCI, Nvidia, Broadcom, and the semiconductor sector overall, citing these developments as a bullish indicator for the broader market. SMCI shares soared by an impressive 35.9 percent, while Nvidia and Broadcom recorded gains of 4.2% and 5.9%, respectively.

However, amidst the celebration of record highs, Jose Torres of Interactive Brokers sounded a note of caution. In a Friday note, Torres warned that the recent market rally appeared to lack broad participation, emphasizing the importance of monitoring the market dynamics closely.

The surge in stock values occurred against the backdrop of economic data revealing that elevated mortgage rates and constrained inventory levels contributed to a slump in US existing home sales, marking the lowest annual level since 1995.

Despite this real estate challenge, a University of Michigan gauge provided a silver lining, indicating a notable uptick in Americans’ positive sentiments about the economy. Consumer sentiment rose by 13% in January, reaching its highest level in nearly two and a half years. Briefing.com highlighted a key takeaway from the report, emphasizing that the increase in sentiment coincided with a decline in year-ahead inflation expectations, returning to levels not seen in three years.

Source: AFP