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US close: Tech stocks boost markets as S&P 500 tops 5,000 for first time

(Sharecast News) - The S&P 500 rose into new territory on Friday while the tech-heavy Nasdaq jumped over 1% after revisions to inflation data turned out to be nothing to worry about. The S&P 500 finished up 0.57% at a fresh closing high of 5,026.61, closing above the key psychological mark of 5,000 mark for the first time.

The Nasdaq gained 1.25% to 15,990.66, finishing within 70 points of its record closing high of 16,057.44 reached in November 2021.

The Dow meanwhile slipped 0.14% to 38,671.69, pulling back after hitting a new record the previous session.

Ahead of the much-anticipated annual revisions to seasonal factors applied to consumer price index numbers, market chatter had been focused on the potential for upside risk to historic inflation figures over the past four years, clouding the outlook for future monetary policy.

But the revisions showed very little change on reported data, easing concerns that the Federal Reserve would maintain a restrictive stance for longer than expected. Revisions were minimal but net effect was that headline CPI rose at a 2.7% annualised rate in the fourth quarter of 2023, down from 2.8% previously.

"In short, these revisions to the seasonals are a damp squib, in stark contrast to last year's revisions, which meaningfully altered the picture for the worse," said economist Kieran Clancy from Pantheon Macroeconomics.

However, while the revisions were "uneventful on the surface", according to economist Ryan Sweet from Oxford Economics, "they should translate into weaker growth in the PCE deflator at the end of last year". Sweet said: "This is good news for the Federal Reserve, and it should strengthen its confidence in the inflation outlook."

Tech stocks provide a lift

Decent gains from the likes of heavyweights Nvidia, Alphabet, Intel, Apple, Amazon.com, Microsoft and Applied Materials were providing a big lift to Wall Street on Friday as investors turned more positive on the economic outlook.

Heading the other way, however, was PepsiCo after the beverages giant missed fourth-quarter revenue expectations and guided to slower annual growth. The owner of Pepsi, Lay's and Quaker, among others, fell 4% after unexpectedly posting a 0.5% decline in revenues in the three months to December end, to $27.9bn; analysts had predicted a 1.4% rise to $28.4bn.

Building and construction materials company Owens Corning tumbled 7% on the news it has agreed to buy Masonite, a provider of interior and exterior doors and door systems, in a $3.9bn deal. Shares in the latter jumped by 35%.

Lastly, Expedia plunged 18% after disappointing with a quarterly earnings miss and lower-than-expected bookings, as the travel company announced a change at the helm with a new chief executive starting in May.

Dow Jones - Risers

Intel Corp. (INTC) $43.31 1.91% Microsoft Corp. (MSFT) $420.55 1.56% International Business Machines Corporation (CDI) (IBM) $186.34 1.07% Nike Inc. (NKE) $104.50 0.70% American Express Co. (AXP) $212.47 0.60% Cisco Systems Inc. (CSCO) $50.13 0.36% Travelers Company Inc. (TRV) $214.50 0.32% Apple Inc. (AAPL) $188.85 0.28% Visa Inc. (V) $276.43 0.24% Johnson & Johnson (JNJ) $156.76 0.23%

Dow Jones - Fallers

Chevron Corp. (CVX) $151.04 -1.96% Walt Disney Co. (DIS) $108.39 -1.94% Caterpillar Inc. (CAT) $317.16 -1.50% Walgreens Boots Alliance, Inc. (WBA) $22.24 -1.33% Amgen Inc. (AMGN) $291.12 -1.27% Merck & Co. Inc. (MRK) $125.45 -0.92% McDonald's Corp. (MCD) $289.47 -0.84% Procter & Gamble Co. (PG) $157.42 -0.77% Verizon Communications Inc. (VZ) $39.72 -0.48% Coca-Cola Co. (KO) $59.56 -0.45%

S&P 500 - Risers

Applied Materials Inc. (AMAT) $185.84 6.87% Harley-Davidson Inc. (HOG) $36.85 5.56% Lam Research Corp. (LRCX) $911.58 5.46% Under Armour, Inc. (UA) $7.84 5.09% KLA-Tencor Corp. (KLAC) $649.80 5.06% Paypal Holdings Inc (PYPL) $58.91 4.95% Under Armour Inc. Class A (UAA) $8.09 4.93% FirstEnergy Corp. (FE) $37.31 4.25% Fortinet Inc. (FTNT) $70.44 3.82% Nektar Therapeutics (NKTR) $0.71 3.65%

S&P 500 - Fallers

Expedia Group Inc. (EXPE) $131.11 -17.78% Leggett & Platt Inc. (LEG) $20.46 -12.11% Take-Two Interactive Software Inc. (TTWO) $154.91 -8.66% Norwegian Cruise Line Holdings Ltd (NCLH) $16.42 -6.17% Mettler Toledo International (MTD) $1,174.51 -4.12% Illumina Inc. (ILMN) $137.84 -3.83% TripAdvisor Inc. (TRIP) $21.69 -3.79% Healthpeak Properties, Inc (PEAK) $17.34 -3.61% PepsiCo Inc (PEP) $167.67 -3.55% Hershey Foods Corp. (HSY) $195.45 -3.39%

Nasdaq 100 - Risers

Applied Materials Inc. (AMAT) $185.84 6.87% Lam Research Corp. (LRCX) $911.58 5.46% KLA-Tencor Corp. (KLAC) $649.80 5.06% Paypal Holdings Inc (PYPL) $58.91 4.95% Nvidia Corp. (NVDA) $721.33 3.58% Charter Communications Inc. (CHTR) $291.15 3.03% Asml Holdings N.V. (ASML) $949.60 2.89% Amazon.Com Inc. (AMZN) $174.45 2.71% Baidu Inc. (BIDU) $105.69 2.44% Gen Digital Inc. (GEN) $21.35 2.30%

Nasdaq 100 - Fallers

Expedia Group Inc. (EXPE) $131.11 -17.78% Take-Two Interactive Software Inc. (TTWO) $154.91 -8.66% Illumina Inc. (ILMN) $137.84 -3.83% Booking Holdings Inc. (BKNG) $3,758.18 -2.14% Mondelez International Inc. (MDLZ) $73.17 -2.13% Sirius XM Holdings Inc (SIRI) $4.90 -1.80% Henry Schein Inc. (HSIC) $73.72 -1.58% Cognizant Technology Solutions Corp. (CTSH) $77.10 -1.53% Monster Beverage Corp (MNST) $55.66 -1.47% Kraft Heinz Co. (KHC) $35.97 -1.37%

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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