Stocks climbed on Friday, setting the S&P 500 on track for a new record high as a tech-led rally lifted a market weighed down by uncertainty over the odds of an early interest rate cut.
The tech-heavy Nasdaq Composite (^IXIC) jumped 0.7%, eyeing a return to gains notched Thursday as Apple (AAPL) and chipmakers outperformed. The benchmark S&P 500 (^GSPC) rose 0.5%, while the Dow Jones Industrial Average (^DJI) gained 0.5% or about 170 points.
Focus has turned to big tech to potentially kickstart a lagging stock market, now that the key drivers of the late 2023 rally have waned. Thursday’s tech-led surge in stocks put the S&P 500 within 0.3% of its all-time closing high of 4,796.56 and snapped a three-day losing streak for the Dow.
But stocks have had a bumpy holiday-shortened week, as investors reacted to policymakers’ comments, economic data, and corporate earnings in a bid to gauge the likelihood of a Federal Reserve pivot. The market is still closely watching for cues to the timing of rate cuts, which could set the tone for corporates this year.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
In individual stocks, iRobot (IRBT) shares were down 29% after a report that EU regulators plan to block Amazon’s (AMZN) $1.4 billion acquisition of the Roomba maker. Meanwhile, Macy’s (M) slipped over 3% after the retailer said it is cutting 2,350 jobs and closing five stores.
Quarterly results from Travelers (TRV), Regions Financial (RF), and banks are on the earnings docket Friday. In economic updates, a December reading on existing home sales is due, as well as a look at consumer sentiment from the University of Michigan.
Elsewhere, a reprieve in the US government funding saga came after lawmakers passed a stopgap bill to avert a looming shutdown.
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