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The S&P500 broke a new record due to optimism for the US economy

The Dow Jones Industrial Average rose 247.85 points, or 0.7%, to 38,054.24; the S&P500 index gained 25.95 points, or 0.5%, to 4,895.05 units; and the Nasdaq Composite improved 28.58 points, or 0.2%, to 15,510.50 units.

The S&P500 recorded its fifth consecutive all-time high at the close on Thursday in Wall Streetafter data that showed a strong economic performance in the fourth quarter, boosting hopes of a soft landing, while Tesla fell after disappointing sales forecast.

The Industrial Average Dow Jones rose 247.85 points, or 0.7%, to 38,054.24; the index S&P500 gained 25.95 points, or 0.5%, to 4,895.05; and the Nasdaq Composite rose 28.58 points, or 0.2%, to 15,510.50.

The gains extended a rally that saw the S&P500 recently hit record highs for the first time in two years, boosted by optimism about the economy and lower interest rates, as well as bets on artificial intelligence.

Tesla fell to its lowest level since May 2023 after its executive director, Elon Muskwarned that the Sales growth would slow this year despite price cuts that have affected its margins. Leaving the automaker’s stock market value at about $573 billion, below Eli Lilly and Broadcom.

Wall Street celebrated data on the US economy

According to a report from the Department of Commerce, the economy grew more than expected in the December quarter, thanks to strong consumer spending, defying predictions of a recession in 2023 after the Federal Reserve aggressively raised interest rates, with annual growth of 2.5%.

“The GDP was a good surprise for the market in the sense that there was no problematic inflation, and the consumer continues to spend money”said Rob Haworth, senior director of investment strategy at US Bank Asset Management Group.

“And so there’s more support for the narrative that corporate profits and sales growth should be better as we go,” he added.

Another set of data showed that initial unemployment benefit claims for the week ending January 20 rose to 214,000, above the estimated figure of 200,000.

Next week’s quarterly results Apple, Microsoft, Amazon, Alphabet and Meta Platforms They will allow investors to check whether the high valuations of these pesos are justified after the increases in their shares since Wall Street hit bottom in 2022.

Other electric vehicle manufacturers also fell after Tesla’s quarterly report. Rivian Automotive and Grupo Lúcido fell.

Of the S&P 500 companies that have reported results to date, 82% have exceeded expectations, according to LSEG data. The long-term average is 67%.

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