Pre-Market Pulse 9th February – S&P500 touches 5000 and closes just under

Overnight – S&P500 touches 5000 for the first time but closes just under

On Thursday, the S&P 500 marginally increased by 0.06% to close at 4,997.91, after momentarily surpassing the 5,000 mark for the first time, peaking at 5,000.40. The Dow Jones Industrial Average witnessed a modest rise, gaining 48.97 points to settle at 38,726.33, a 0.13% increase. Meanwhile, the Nasdaq Composite advanced by 0.24%, ending the day at 15,793.71. Jay Woods of Freedom Capital Markets commented on the market’s condition, suggesting that the ongoing rally might be losing its momentum despite the positive headline.

The recent market boost has been largely driven by strong earnings and significant gains in major technology stocks, yet concerns about the sustainability of this rally persist due to its concentrated nature and renewed rate cut uncertainties expressed by Federal Reserve officials, including Chair Jerome Powell.

Disney’s shares soared by 11.5% following quarterly earnings that exceeded expectations and an improved outlook. Similarly, Arm Holdings experienced a remarkable surge of 47.9% after outperforming earnings forecasts and issuing a positive profit outlook. Despite strong earnings bolstering market confidence in a resilient economy capable of sustaining corporate growth, rising yields from the 10-year Treasury note, which last stood at 4.15%, applied pressure on equities. The earnings season is set to continue with upcoming reports from Expedia, Affirm Holdings, and Take-Two Interactive, maintaining investor focus on corporate performance.