Traders work the floor during morning trading at the New York Stock exchange (NYSE) ahead of the US Federal Reserve’s decision on lending rates, in New York on January 31, 2024.
Angela Weiss | Afp | Getty Images
Stock futures were around flat Friday morning after the S&P 500 crossed the historic 5,000 milestone for the first time during intraday trading.
Futures on the Dow Jones Industrial Average were unchanged, while S&P 500 futures rose 0.1%, and Nasdaq 100 futures nudged up 0.3%.
The large-cap benchmark reached a high of 5,000.40 during Thursday’s regular trading before closing less than 3 points below the key 5,000 threshold. The S&P 500 first crossed 4,000 on April 1, 2021, so it took almost three years to add the last 1,000 points. A solid earnings season, easing inflation data and a resilient economy have powered the market rally into 2024, with the S&P 500 up 4.8% on the year.
“On the surface, there is no difference between 5,000 and 4,999, but these big round numbers do hold psychological significance for investors,” said Ryan Detrick, chief market strategist at Carson Group. “As we’ve seen throughout history, those that are willing to hold during the rough times are usually rewarded in the end, this time was no different.”
S&P 500
The equity benchmark is up 0.8% this week, on track to post its fifth straight weekly gain. The blue-chip Dow and the Nasdaq Composite have gained 0.2% and 1.1% this week, respectively, also headed for a five-week win streak.
A total of 319 companies in the S&P 500 have reported quarterly earnings so far, and 80.6% of them reported above analyst expectations, according to LSEG. That compares to a 67% beat rate in a typical quarter since 1994.
Pinterest shares dropped 9% in extended trading after the image-sharing company issued a weaker-than-expected forecast and also missed revenue estimates for the latest quarter. The stock pared losses after the CEO announced an app deal with Google.