Wall Street Aims to Cap Off Another Winning Week with S&P 500 Eyeing Historic 5,000 Mark
As Wall Street gears up for the market’s open on Friday, there’s an upbeat mood in the air, with the S&P 500 flirting with the milestone 5,000 level. Should it close at or above this level, it would mark a historic first, encapsulating the current bullish sentiment in the stock market.
The futures for the S&P 500 edged up by around 0.2% to 5,025.50. Meanwhile, the Dow Jones Industrial Average saw a modest increase of 0.1%. This week’s upward trajectory in the markets has been predominantly driven by corporate earnings results, despite a mix of financial performances from several big-name companies.
In premarket trading, PepsiCo’s shares saw a slight downturn of 0.5%. The beverage and snack giant missed its sales forecasts and adjusted its revenue guidance for 2024 downwards. In contrast, Cloudfare’s shares soared by over 24% upon surpassing Wall Street’s expectations for sales and profits and providing a robust outlook for 2024. Its shares have witnessed a dramatic rise of 180% since a May low of $40.
However, it wasn’t all positive news in the premarket sessions. Take-Two Interactive experienced a 7.4% drop after narrowly missing its sales and profit expectations and reducing its future outlook. Similarly, despite outperforming sales and profit estimates, Expedia saw its shares plunge by 15.6%, amid news that CEO Peter Kern would be stepping down in May, to be succeeded by Ariane Gorin.
Pinterest didn’t escape the trend of disappointments, with its shares tumbling more than 8% after failing to meet revenue expectations and issuing guidance for the first quarter that fell short of analysts’ predictions.
Internationally, the performance of markets was mixed. In Asia, despite many markets being closed for the Lunar New Year holiday, Tokyo’s market nudged slightly up by less than 0.1% after reaching a 34-year high during the day. This rise was partially fueled by comments from a Bank of Japan official indicating a continuation of the central bank’s lax monetary policy.
Over in Europe, trading exhibited a subdued tone by midday. Germany’s DAX and the CAC 40 in Paris were relatively unchanged, while Britain’s FTSE 100 saw a minor uptick of 0.1%. Notably, trading volumes were affected by the Lunar New Year celebrations, with mainland China’s markets closed and Hong Kong operating on a half-day schedule.
In commodities, U.S. crude oil experienced a slight decline, shedding 16 cents to settle at $76.06 a barrel. Brent crude followed suit, dipping 25 cents to $81.38 a barrel. Meanwhile, in the currency exchange, the U.S. dollar weakened against the Japanese yen, and the euro saw a slight increase.
The surge in Bitcoin’s value by 4.6%, reaching $47,000 for the first time in two years, highlighted a broader increase in the cryptocurrency market. This rally underscores the growing investor interest in alternative investments amidst the current economic landscape.
As the market closed on Thursday, the momentum for the week remained positive. The S&P 500 inched up by 0.1%, and the Dow Jones reached a new all-time high, marking a significant week for Wall Street as it looks to conclude another week on a high note.
