S&P 500 closes above 5,000 points for first time, extending rally

The S&P 500 finished above 5,000 for the first time Friday, extending a rally on solid earnings and economic data that have raised confidence the US economy can avert recession.

Large tech companies such as Google parent Alphabet and Amazon continued to enjoy outsized support from investors, also lifting the Nasdaq.

“This is an environment that emphasizes the importance of following the leaders,” said Adam Sarhan of 50 Park Investments.

“When you look at the leading stocks in Wall Street, clearly you can see technology continues to lead time and time again.”

The broad-based index finished at 5,026.61, up 0.6 percent, notching its 10th closing record of 2024.

The tech-rich Nasdaq Composite Index jumped 1.3 percent to 15,990.66, while the Dow Jones Industrial Average dipped 0.1 percent to 38,671.69.

Stocks have been on an upswing since late October as the Federal Reserve pivoted away from aggressive interest rate increases while inflation has eased.

Revised consumer price index data showed a downward revision in December. Markets are looking ahead to an updated CPI reading next week for January.

Among individual companies, Expedia shares dropped 17.8 percent as it reported lower earnings compared with the year-ago period.

The travel company named company executive Ariane Gorin as its new CEO, replacing Peter Kern, who will continue to serve as vice chairman.