TSM - Wall Street Set To Build On Tech-Driven Rally S&P 500 Eyes All-Time High: Analyst Points To 'Contrarian Signal' For Buying Stocks | Benzinga
U.S. stocks seem poised for a higher open on Friday, buoyed by optimism surrounding upcoming earnings reports as the tech reporting season kicks off next week. Encouragement is also drawn from Congress’s agreement on a bill to fund the federal government until early March. Additionally, the day’s trading direction may be influenced by a few Federal Reserve official speeches, a consumer sentiment reading, and regional bank earnings.
As sentiment takes a positive turn, the focus shifts to the S&P 500 Index, with anticipation of surpassing its previous all-time high of 4,796.56 set in early January 2022.
Cues From Thursday's Trading:
- Tech optimism fueled a market rebound on Thursday following positive fourth-quarter earnings from Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Further strength was added by Atlanta Fed President Raphael Bostic’s comments hinting at a potential rate cut in the third quarter.
- The major averages opened higher but followed divergent paths, with the Nasdaq Composite and S&P 500 maintaining gains throughout the session. The Dow Industrials initially stayed mostly in the red before moving into positive territory late in the afternoon, breaking a three-session losing streak.
- The Nasdaq 100 Index, consisting of the 100 largest non-financial tech stocks, closed Thursday’s session at a new record.
- Economic readings revealed a surprise drop in jobless claims for the week ended Jan. 13, a larger-than-expected contraction in Philadelphia region manufacturing activity, and a mixed housing starts report.
- S&P 500 rally leaders included IT, communication services, industrial, and IT services stocks, while defensive utility and real estate stocks ended the session lower.
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