The S&P 500 rose slightly on Friday, and all the major averages headed for a winning week buoyed by better-than-expected economic growth and a rush in market darling Tesla.
The benchmark index rose 0.4%, while the Nasdaq Composite jumped 0.9%, supported by technology stocks. The Dow Jones Industrial Average traded 97 points, up 0.3%.
Earnings season continued, with strong guidance boosting American Express Almost 12% though Maximum and minimum error. Some chip stocks rose even with Intel fell about 8% on a Dismal earnings report that exceeded expectations.
All major averages are positive for the week and month. The Dow Jones and the Standard & Poor’s are up 1.9% and 2.5% this week, respectively. The Nasdaq rose 4.2% and is set for its best monthly performance since July. Tesla rose more than 11% Friday, based on a weekly gain of more than 27% After reporting record revenue.
So far this year, markets have bucked the 2022 selling trend. The Dow Jones is up 2.2%, while the S&P is up 5.6%. The Nasdaq rose more than 10%.
“We’re putting the finishing touches on a very strong January on the heels of lower inflation, and the existing economy out there,” said Ryan Detrick, chief market strategist at The Carson Group. “We’re not out of the woods though. We still have the Fed next week, and they might want to throw some water on that rally.”
Investors also weighed in on more economic data ahead of next week’s Fed policy meeting. The Commerce Department said the PCE price index, a preferred measure of inflation for the Fed, showed prices rising 4.4% from a year ago, in line with Dow Jones estimates.
It’s some of the last data before the central bank’s next interest rate decision. Investors are currently expecting an upside of 25 basis points.
The shares come off a positive trading session after investors cheered a better-than-expected result GDP report for the fourth quarter. This boosted hopes that the US economy could face a soft landing as the central bank raises interest rates to tame inflation.
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