Wall Street Rebounds: S&P 500, Dow, and Nasdaq Surge on Strong Economic Data and Tech Rally
Staff Editor US Stocks Rally, Ending Five-Day Losing Streak
U.S. stocks rebounded on Friday, breaking a five-day losing streak as consumer discretionary and technology sectors led the market higher. The positive turn was bolstered by encouraging manufacturing data and signs of political stability in Washington.
The S&P 500 closed up 1.26% at 5,942.48, while the Dow Jones Industrial Average gained 0.80% to end at 42,732.13. The tech-heavy Nasdaq Composite saw the most significant increase, rising 1.77% to finish at 19,621.68.
Market sentiment improved following the release of December’s ISM Manufacturing data, which showed a nine-month high at 49.3%, surpassing analysts’ expectations. Additionally, Mike Johnson’s reelection as Speaker of the House eased political tensions, contributing to the market’s upward movement.
In the technology sector, Microsoft’s announcement of plans to invest $80 billion in data centers by 2025 provided a substantial boost. Brad Smith, Microsoft’s vice chair and president, highlighted the economic potential of new technology, comparing its impact to that of electricity.
The news also benefited nuclear power stocks, with Constellation Energy Group and Vistra Corp. experiencing significant gains due to increased demand from AI data centers. Nvidia, a key player in the AI chip market, saw its stock jump more than 4% during the session.
Investors are now looking ahead to upcoming economic updates, including jobless claims and the U.S. employment report for December, which could provide further insight into the health of the economy.
In other market news, BlackRock’s bitcoin ETF saw a record daily outflow, while alcohol stocks declined following a cancer risk warning from the U.S. surgeon general. The U.S. oil sector continues to boom, with shale executives planning increased spending.
On the geopolitical front, President Joe Biden blocked Japan’s takeover bid of U.S. Steel, citing national security concerns.
In commodities, West Texas Intermediate crude oil rose to $74.04 a barrel, and Brent crude increased to $76.57 a barrel. Gold prices fell slightly to $2,651.00 an ounce. The 10-year Treasury yield climbed to 4.603%, while Bitcoin surged to $98,386.
As the market begins the new year on a positive note, analysts and investors will be closely monitoring upcoming economic indicators and corporate earnings reports for further direction.
