Stocks rallied on Friday and capped off a winning week, buoyed by better-than-expected economic growth and gains in Tesla shares.
The Nasdaq Composite gained 0.95% to end at 11,621.71, while the S&P 500 gained 0.25% to end at 4,070.56. The Dow Jones Industrial Average rose 28.67 points, or 0.08%, to end at 33,978.08.
All major stock indexes recorded a positive week and are on track for a month of gains. The tech index rose 4.32%, snapping a fourth straight weekly gain. It was on track for its best monthly performance since July. The S&P and Dow rose 2.47% and 1.81% respectively for the week.
Earnings season looms, boosted by strong guidance American Express While neither the top nor the bottom line has been met, the share price is still at 10.5%.Some chip stocks even rose Intel Shares fell more than 6% as earnings missed expectations.
Tesla rose 11% on Friday and is up more than 33% for the week after reporting record revenue. That marked the best weekly performance for electric vehicle stocks since May 2013.
So far this year, the market has reversed its 2022 sell-off. The Dow rose 2.5%, while the S&P gained 6%. The Nasdaq rose 11%.
“We’re putting the final touches on January being extremely strong amid falling inflation and a stagnant economy,” said Ryan Detrick, chief market strategist at Carson Group. “We’re not out of the woods yet. Next week we’ll And the Fed, they might want to throw some water on this rally.”
Investors weighed in on more economic data on Friday ahead of next week’s Federal Reserve policy meeting. The Commerce Department said the personal consumption expenditures price index excluding energy and food showed prices rose 4.4 percent from a year earlier, in line with the Dow Jones estimate. The so-called PCE is the Fed’s preferred inflation measure.
A better-than-expected fourth-quarter gross domestic product report on Thursday also helped stoke hopes that the Fed could achieve a soft landing.
These are some of the final data points before the central bank is widely expected to raise rates by 25 basis points.
Read today’s market report in Spanish here.