(Reuters) – The New York Stock Exchange ended higher on Friday, with a record close for the S&P-500, as strong profits and employment figures reassured about the resilience of the US economy, despite the fear that the Federal Reserve will delay lowering its rates.
The Dow Jones index gained 0.35%, or 134.58 points, to 38,654.42 points. The broader Standard & Poor’s 500 gained 52.42 points, or 1.07% to 4,958.61 points. , a record. The Nasdaq Composite advanced 267.31 points (1.74%) to 15,628.954.
Over the week, the S&P-500 gained 1.38%, the Nasdaq 1.12% and the Dow Jones 1.43%. The three main American stock indices thus recorded their fourth consecutive weekly increase.
This rally ended a tumultuous week, marked by highly praised results, notably from Meta Platforms (+20.32%) and Amazon.com (+7.9%), a disappointment on the interest rates of the Fed and renewed concern about the weakness of regional banks.
“Earnings were strong for most companies this week, and we think the Fed meeting was bullish because it correctly set expectations for May or June rate cuts,” commented Jay Hatfield , portfolio manager at InfraCap in New York.
Financial markets now estimate a 20.5% chance of a 25 basis point rate cut at the Fed’s March meeting, up from 69.6% a month ago, according to FedWatch. CME.
The United States added 353,000 jobs in January, far exceeding analysts’ estimates, while wage growth accelerated unexpectedly, according to the Labor Department.
“Looking ahead, investors will focus on upcoming earnings and economic reports (…) to assess the scale and timing of the Fed’s rate cuts,” added Greg Bassuk, managing director of AXS Investments in New York.
The earnings season continues with 230 S&P 500 companies having published their financial accounts. According to LSEG data, 80% of them exceeded Wall Street expectations.
All told, analysts now forecast S&P 500 earnings growth of 7.8% year-over-year for the October-December period, a marked improvement from estimates of 4.7% as of January 1.
Among other stocks, investors welcomed the better than expected results of the oil major Chevron (+2.94%), as did those of Cigna in the health sector (+5.38%).
( Kate Entringer)
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