The S&P 500 rose to another new record high as earnings optimism rose
The S&P 500 and Nasdaq rose on Wednesday amid strong optimism about corporate earnings.
The Dow Jones fell nearly 100 points, but the S&P 500 managed to post its fourth straight record close.
Tesla and IBM will report fourth-quarter financial results after the closing bell.
The S&P 500 rose to close at a new record high on Wednesday amid strong optimism in corporate earnings, especially big technology companies.
Netflix shares jumped 12% after the streaming giant reported excellent fourth-quarter results. The company added 13 million new subscribers in the past three-month period alone, bringing total subscribers to an all-time high of 260 million.
Investors are now awaiting the earnings results of Tesla and IBM, which are scheduled to be announced after the closing bell. Markets are also awaiting new GDP data and personal consumption expenditures inflation, the Fed’s preferred measure of inflation, later this week, which could influence the pace of Fed interest rate cuts this year. The central bank is scheduled to meet at its next policy meeting on January 30.
Markets have dialed back hopes slightly for a rapid easing of monetary policy, but are still setting interest rates low by the end of the year. Investors see a 45% chance rates will end up below 4% by December 2024, implying at least 150 basis points of cuts, according to the CME FedWatch tool.
Here is where US indices stand at the closing bell at 4:00pm on Wednesday:
Here’s what else happened today:
In commodities, bonds and cryptocurrencies:
gold It dropped to $2,013 per ounce.
The yield on 10-year Treasury bonds rose by three basis points to 4.18%.
Bitcoin It rose 1.49% to $39,810.
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