Clearing a record last set two years ago, The index climbed 1.2% to 4,838 on 19 Jan. “After a more than two-year wait, the stock market hit a new record high,” said Greg McBride at Bankrate.
Amongst the signs that economic despondency may be easing that has been gripping the US customers, the S&P 500 made a new all-time high.
A survey represented that consumer sentiment reached 13% in January, which is the highest since July 2021. As per The University of Michigan’s monthly consumer sentiment index, it is the biggest monthly advance since 2005- 9.1 points to 78.8.
According to Joanne Hsu, the University of Michigan’s director of surveys, sentiment has reached a cumulative 29% in the last two months, which is the biggest 2 months rise since 1991. “Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations,” said Hsu.
In January, Nvidia., Microsoft Corp., and Meta Platforms Inc. — all part of the “Magnificent Seven” cohort — are the largest point achievers in the S&P 500. This is the same group of companies which has led a stellar run in stocks last year and is once again 2024 driving the force. Because of a bullish forecast, Taiwan Semiconductor Manufacturing Co.’s semiconductor shares increased.
BofA said, citing EPFR Global data, that tech-stock funds saw the biggest two-week inflow since August at $4 billion.
There were expectations that the rate of inflation would continue to fall; it has also contributed to this rise in large amounts. According to the survey, consumers are expecting prices to reach an annual rate of 2.9%, down from 3.1% in December over the next year.
According to Societe Generale’s weighted analysis of data on the Nasdaq 100 Index futures and e-mini contracts, in nearly seven years, Hedge funds are holding the highest level of net-long Nasdaq 100 futures. “Based on the recent price action, Nasdaq 100 traders don’t seem particularly concerned about the upcoming earnings reports,” said Matthew Weller at Forex.com and City Index. He said, with the “Magnificent Seven” stocks collectively trading at an “eye-watering” valuation, “the only thing that could drag down the Nasdaq 100 may be poor earnings results”. The Michigan survey released recently indicates that the national mood may be changing.
The Conference Board reported that 2023 had ended with an increase in consumer confidence as the closely watched consumer confidence survey increased to levels last seen in July.
Read Also – Beverly Johnson Took Cocaine