Stocks rise as tech companies are poised to soar

[ad_1]

Stocks rose on Friday, putting the S&P 500 on track for a new all-time high as a tech-led rally lifted a market weighed down by uncertainty over a possible early interest rate cut.

The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5%, aiming to return to gains posted on Thursday, as Apple (AAPL) and semiconductor manufacturers outperformed. The benchmark S&P 500 Index (^GSPC) rose 0.3%, and the Dow Jones Industrial Average (^DJI) rose 0.3%, or about 120 points.

Now that the main drivers of stock gains in the second half of 2023 have faded, the focus has shifted to big tech that could revitalize a sluggish stock market. Thursday’s tech-led rally brought the S&P 500 within 0.3% of its closing record high of 4,796.56, ending the Dow Jones Industrial Average’s three-day losing streak.

But the holiday-shortened week was a volatile one for stocks as investors tried to gauge a possible change in Federal Reserve policy and reacted to policymakers’ statements, economic data and corporate earnings. Markets are still closely watching for clues about the timing of a rate cut that could set the tone for businesses this year.

read more: Impact of the Fed’s interest rate hike suspension on bank accounts, CDs, loans, and credit cards

Among individual stocks, iRobot (IRBT) shares fell 29% following reports that EU regulators plan to block Amazon’s (AMZN) $1.4 billion acquisition of the Roomba maker. Meanwhile, Macy’s (M) fell more than 3% after the company announced 2,350 layoffs and the closure of five of its stores.

Quarterly results for Travelers (TRV), Regions Financial (RF) and Banks will be published in earnings reports on Friday. The latest economic information will include statistics on existing home sales for December and a survey of consumer sentiment by the University of Michigan.

Elsewhere, the U.S. government’s funding spree was given a reprieve after lawmakers passed interim legislation to avert a looming government shutdown.

live2 updates

Friday, January 19, 2024, 8:04 PM (GMT+5:30)

Stock prices rise as S&P500 aims for record highs

Wall Street opened higher across the board on Friday, with the S&P 500 hitting new highs as investors appeared to shake off pessimism about the possibility of a Fed rate cut.

The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5%, aiming to return to gains posted on Thursday, as Apple (AAPL) and semiconductor manufacturers outperformed. The benchmark S&P 500 (^GSPC) rose 0.3%, and the Dow Jones Industrial Average (^DJI) rose 0.3%, or about 120 points.
Friday, January 19, 2024, 7:14 PM GMT+5:30

Ford cuts F-150 Lightning production after demand flags for electric trucks

Ford (F) announced early Friday that it would lay off 1,400 workers from the production line of the F-150 Lightning, the electric version of its best-selling truck, in response to customer demand.

That means people aren’t as excited about buying the electric version of the F-150 as the company had planned.

Half of those workers will be transferred to Ford plants that make the new Bronco and Ranger trucks, while the other half will receive buyout offers or move to the Dearborn plant, where the F-150 Lightning is built. will find placement in another role.

This move is reminiscent of an article by Yahoo Finance’s Pras Subramanian in late 2023 in which he said the industry’s EV dreams matched reality last year.

In other words, lofty predictions made by automakers in recent years that the country would become like California when it comes to EV adoption are starting to look too much like dreams.

And investors were certainly skeptical. Ford and General Motors (GM) stock prices have both fallen in the last year, lagging far behind the S&P 500 over that period.

The euphoria that swept the auto industry in 2021 as rising interest rates made auto financing more difficult for many consumers, fears of an economic slowdown still weighed on consumers, and inventory levels remained depressed. will feel quite far away when 2024 begins.