The U.S. stock market is poised for its sixth consecutive day of gains, with investor confidence remaining high. The latest boost comes from better-than-expected economic growth and an anticipated slowdown in inflation.
In the last quarter of 2023, the U.S. economy grew at a 3.3% annualized pace, significantly outstripping the 2% growth economists had expected. Other economic indicators released Thursday provided a mixed picture. Durable goods orders stagnated in December, and unemployment claims rose more than expected last week.
Market-implied expectations on Fed interest rates remain broadly unchanged. Investors currently assign a 56% chance of no change in March, followed by six consecutive cuts by December.
The dollar gained 0.4%, propelled by weakness in the euro as the European Central Bank warned of recessionary risks.
Treasury yields were mostly lower by about 4 basis points, contributing to gains in the fixed-income space. The iShares 20+ Year Treasury Bond ETF TLT saw a 0.6% increase.
Oil prices surged 2% on lower-than-expected inventory data and escalated tensions in the Middle East. WTI crude rose to nearly $77 per barrel, reaching a two-month high.
Bitcoin remained at the $40,000 level, while gold experienced slight gains.
Thursday’s Performance In U.S. Major Indices, ETFs
| Major Indices | Price | % |
|---|---|---|
| Russell 2000 | 1,967.84 | 0.2% |
| S&P 500 | 4,879.59 | 0.2% |
| Nasdaq 100 | 17,516.46 | 0.1% |
| Dow Jones | 37,829.03 | 0.1% |
The SPDR S&P 500 ETF Trust SPY rose by 0.2% to $486.43, the SPDR Dow Jones Industrial Average DIA inched 0.1% higher to $378.41, and the tech-heavy Invesco QQQ Trust QQQ rose 0.1% to $426.27, according to Benzinga Pro data.
Sector-wise, the Real Estate Select Sector Fund XLRE outperformed, rising by 1.2%. However, the Consumer Discretionary Select Sector Fund XLY underperformed, declining by 1.6%, impacted by Tesla.
Among industries, the U.S. Global JETS ETF JETS led the way, surging by 2.7%.
Thursday’s Stock Movers
- Tesla Inc. plummeted more than 12% after both revenue and earnings missed analyst estimates last quarter. The EV titan is on course for its worst-performing day since September.
- EV competitors Lucid Group Inc. LCID and Rivian Automotive Inc. RIVN fell 7% and 2%, respectively.
- Airline stocks reacted to quarterly earnings, with American Airlines Group Inc. AAL up 10%, Alaska Air Group Inc. ALK climbing 5%, and Southwest Airlines Company LUV down 0.6%.
- Other companies responding to earnings include United Rentals Inc. URI (up 13%), International Business Machines Corp. IBM (up over 10%), Las Vegas Sand Corp. LVS (up 0.7%), Comcast Corporation CMCSA (up over 3%), Humana, Inc. HUM (down over 11%), and Ameriprise Financial, Inc. AMP (down 0.2%), among others.
Read now: Tesla Analysts Cut Projections After Q4 Results: Stock ‘Egregiously Overvalued,’ ‘Difficult To Get Optimistic’
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