The S&P 500 is on track to reach a new high, with the technology sector leading the way for a third consecutive winning session. U.S. equity index futures indicate that the S&P 500 could grind to another record high. On Thursday, the S&P 500 rose 0.6% to 5,029.73, surpassing its previous record close reached last week. The Dow Jones Industrial Average gained 0.9% to 38,773.12, and the Nasdaq Composite climbed 0.3% to 15,906.17.
Thursday’s record-breaking performance came amid mixed manufacturing data and a significant fall in retail sales for January. This news eased concerns about the pace of Federal Reserve interest rate cuts following a surprising inflation report earlier in the week. However, senior analyst Ipek Ozkardeskaya from Swissquote Bank noted that economic data is becoming less meaningful as investors find positive narratives to keep the rally going.
Investors can expect another busy day of data, starting with January housing starts and the producer price index, both expected to slip 0.1%. The University of Michigan preliminary consumer sentiment survey for February will be released at 10 a.m. Additionally, there are scheduled speeches from Fed Vice Chair for Supervision Michael Barr and San Francisco President Mary Daly.
Technology stocks are leading the way on Friday, with the Nasdaq set for a third-straight positive session. However, the index is down 0.5% for the week as of Thursday. Applied Materials Inc., a chip-equipment company, saw its shares surge 13% in premarket trading after delivering upbeat results and guidance. Tesla Inc. and Nvidia Corp. also saw gains in premarket trade.
Overall, the market is showing signs of optimism despite mixed economic data. Investors are finding reasons to remain positive and are driven by expectations of rate cuts at the end of the tunnel. The technology sector continues to perform well, with specific companies delivering positive results. As the day progresses, investors will be closely watching the housing starts, producer price index, and consumer sentiment data to gauge the market’s direction.
