Sinéad Carew and Johann M. Cherian
(Reuters) – The benchmark index managed to gain modestly on Thursday after briefly reaching the 5,000-point mark as investors reacted to earnings reports, a roughly flat jobs report and remarks from policymakers about lower interest rates.
Overall, small-cap indexes outperformed large-cap stocks, and semiconductor stocks also outperformed, with shares of chip designer ARM Holdings (LON:) rising 47.9% after the company forecast strong demand for designs. related to artificial intelligence.
Walt’s shares Disney (NYSE:) shares rose 11.5% after the media giant’s earnings beat Wall Street estimates and it announced a $3 billion share buyback plan, a 50% dividend increase, investments in games and plans to create a streaming service. ESPN in 2025.
Spirit Airlines (NYSE:) shares rose 3.3% after the airline said it expects to operate with positive cash flow in the second quarter after reporting a smaller-than-expected loss.
More than half of the S&P 500 companies reported quarterly profits, with 80.6% beating expectations, compared with the long-term average of 67%, according to LSEG.
In economic data, the number of Americans filing new claims for unemployment benefits fell slightly more than expected last week, indicating underlying strength in the labor market.
“On this seemingly sleepy day, there are some things hidden beneath the surface. There is more risk appetite. Semiconductors continue to demonstrate leadership,” said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.
“We’ve had such outperformance in mega-caps, investors are looking for other opportunities, even in tech they’re pushing market caps lower,” Lerner said, referring to stronger growth in the S&P 600 tech sector than in the S&P 500 tech sector.
As for the 5,000-point mark that the S&P briefly breached late in the session, Lerner said, “It could bring some excitement, some positive inflows.”
The S&P 500 rose 48.97 points, or 0.13%, to 38,726.33, and the S&P 500 added 2.85 points, or 0.06%, to 4,997.91, also up 37.07 points , or 0.24%, to 15,793.72.
While gains were subdued, the S&P 500 hit a record high for a second straight day as investors shrugged off uncertainty over the timing of interest rate cuts and doubts about the stability of some regional banks.
The small-cap index outperformed the session and closed up 1.5%. The Philadelphia semiconductor index rose 1.6% as the sector is seen as a key beneficiary of artificial intelligence technologies.
Among the 11 major sectors of the S&P 500 index, the energy sector led gains of 1.1% as oil prices rose.
However, curbing risk appetite, investors sent shares New York Community Bank (NYSE:) fell 6.5% after strengthening Wednesday after the lender appointed a new executive chairman; the company also said it could reduce exposure to the troubled commercial real estate segment.
Meanwhile, Richmond Fed President Thomas Barkin said recent stronger-than-expected US economic data could be partly due to the difficulty of making accurate seasonal adjustments early in the new year.
PayPal (NASDAQ:) shares fell 11.2% after forecasting flat adjusted earnings growth for the year, slowing the decline of the S&P 500 financials sector.
Ralph Lauren (NYSE:) shares rose 16.8% after rising third-quarter revenue, while apparel maker Under Armor (NYSE:) rose 0.1% after raising its full-year profit forecast.
On the NYSE, which posted 358 new highs and 69 new lows, advancers outnumbered decliners by a 1.4-to-1 ratio.
On the Nasdaq, 2,640 stocks rose and 1,622 fell, with advancers outnumbering decliners by a 1.6-to-1 ratio.
The S&P 500 posted 56 new 52-week highs and 7 new lows, while the Nasdaq posted 249 new highs and 109 new lows.