The S&P 500 finished little changed on Thursday after briefly topping the 5,000 milestone for the first time on record.
The broad-based index edged up 0.06% to finish at 4,997.91 after reaching a high of 5,000.40 heading into the close. The Dow Jones Industrial Average rose 48.97 points, or 0.13%, to end at 38,726.33, while the Nasdaq Composite gained 0.24% to close at 15,793.71.
It’s a “good headline, but in perspective, it’s another stop on this ridiculous rally that we’ve seen,” said Jay Woods, chief global strategist at Freedom Capital Markets. “I think the market is tiring, this rally is tiring.”
Strong earnings, and a continued chug higher in megacap technology stocks, have boosted the market in recent sessions, but concentrated leadership in 2023’s darlings has been a matter of concern for some investors fearing it could hamper a sustainable rally.
Michael Arone, chief investment strategist at State Street Global Advisors, attributed this narrow breadth to renewed uncertainty surrounding rate cuts after Federal Reserve Chair Jerome Powell and other officials talked down hopes for a March cut.
Earnings remained top of mind for investors, with Disney surging 11.5% after beating quarterly earnings estimates and raising its guidance. Chipmaker and designer Arm jumped 47.9% after reporting stronger-than-expected earnings and providing an upbeat profit forecast.
Yields rose Thursday with the 10-year Treasury note last at 4.15%. The move put some pressure on stocks despite a raft of strong earnings reports that have lifted investor confidence that a robust economy can continue driving corporate profits and growth.
“Earnings continue to come in better than expected, and contribute to some pretty positive moves in specific stocks,” Arone said. “Overall, in terms of sentiment, that’s allowed the market to continue to touch new highs.”
The earnings season continues after the bell with reports from Expedia, Affirm Holdings and Take-Two Interactive.
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