Topline
The S&P 500 set a new all-time high on Thursday, seeing a 0.6% rise to 6,304.69 at 3 p.m. EDT (SYD). This marked the 6,302.04 intraday record set on Tuesday and achieved just over 6,280 in its closing record. The S&P climbed higher, edging closer to its all-time high of 6,305.12 set in February 2023. Meanwhile, the index also extended its intraday new high to 6,296.92.
PepsiCo, United Airlines, NVIDIA, and Microsoft, among others, contributed to the S&P’s rise, with PepsiCo up 7.6%, United Airlines 4.8%, Nvidia 1.2%, and Microsoft 1.2%. These companies, as part of the broader market, surpassed investors’ expectations regarding their quarterly earnings.
The week saw Jobless Claims drop by 7,000 to 221,000, reflecting a general improvement, while Retail Sales in June advanced by 0.6% to a new 0.2% annual reading, exceeding previous estimates.
Key analysts highlighted concerns following the U.S. dollar’s rebound and broader inflation concerns, as the country’s most valuable firm, Nasdaq, also gained traction. The company is set to announce its second-quarter earnings after trading, with Michael H-id driven to expect a revenue of $11.07 billion and EPS of $7.08.
The S&P has been underpinned by AI and space-padding stocks, reflecting increased regulatory support. However, the US market is stillᤴ ed deeper into a period of inflation tightening, as the Federal Reserve raised interest rates twice in two months.
A_argument: The Fed is considering rate cuts beyond the initial contraction phase.
Keys glandled that Deductions from the Fed Autumn policies are expected, while Netflix reported a Year-End revenue of $24.53 billion in the second quarter.
The overall mood is mixed, with optimism for investor confidence and flattishness amid corporate earnings losses. While rising trends may accelerate, the market remains cautious due to potential disruption.
Conclusion: The S&P’s position is one of uncertainty, with mixed signals from directly supported and controversial firms like Netflix, while broader markets face inflation concerns and estimation challenges. Investors will need to closely monitor Fed moves within the next financial year.
