Stocks rallied on Friday, capping off a winning week boosted by better-than-expected economic growth and Tesla stocks rallying.
The Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 rose 0.25%, closing at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to close at 33,978.08 points.
All major averages posted a positive week and are on track for a month of gains. The heavy technology index rose 4.32% and closed its fourth week of gains. It is on track for its best monthly performance since July. The S&P and Dow added 2.47% and 1.81%, respectively, this week.
Earnings season continued, with strong guidance boosting American Express Down 10.5% though Maximum and minimum error. Some chip stocks rose even with Intel fell more than 6% on a Dismal earnings report that exceeded expectations.
So far this year, markets have bucked the 2022 selling trend. The Dow Jones is up 2.5%, while the S&P is up 6%. The Nasdaq rose 11%.
“We’re putting the finishing touches on a very strong January on the heels of lower inflation, and the existing economy out there,” said Ryan Detrick, chief market strategist at The Carson Group. “We’re not out of the woods though. We still have the Fed next week, and they might want to throw some water on that rally.”
Investors weighed more economic data on Friday ahead of next week’s Fed policy meeting. The Commerce Department said its personal consumption expenditures price index, excluding energy and food, showed prices rising 4.4% from a year ago, in line with Dow Jones estimates. The so-called PCE is the Fed’s preferred measure of inflation.
Better than expected GDP report for the fourth quarter Thursday also helped fuel hopes that the Fed may manage a soft landing.
These are some of the last data points before the widely expected central bank hike of 25 basis points.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”