S&P 500 Closes Above 5,000 for First Time
High-flying tech names drove the index to a record high.
The S&P 500 closed above 5,000 points for the first time, as investors continued piling into the artificial intelligence and other technology companies that have pushed the index higher, betting those stocks have fuel in the tank for future runs.
The index has gained 5.4% this year, adding to last year's 28% jump. The $486.6 billion SPDR S&P 500 ETF Trust (SPY), the largest exchange-traded fund, closed above $500 for the first time, finishing the day at $501.16.
The S&P 500 rose 0.6% today to close at 5026.61. It first traded above 5,000 on Thursday, Feb. 8 before backing down.
Amid a variety of potentially bad economic and global news, including interest rate cut delays, budget battles, and political uncertainty in the U.S., investors have still bet on rising technology stocks and continued consumer spending. Meanwhile, unemployment is down, price inflation has been dropping from historic highs, and wages and consumer confidence are up.
“5,000 might just be an arbitrary round number, but it's exciting for investors to see after a two-year bear market,” said etf.com analyst Sumit Roy.
Better than expected tech earnings from companies such as Meta Platforms Inc., Apple Inc., and Amazon.com, Inc. in recent days drove the index higher and helped turn around a beginning-of-the-year slump in stocks. The broad index, which captures exposure to many of the largest U.S.-based corporations, is up 4.8% this year so far and 11% in the past six months, largely driven by a few high-flying tech socks referred to as the Magnificent 7.
S&P 500, SPY Hit Milestones
A Feb. 2 jobs report offered more positive news for investors pushing the stock market higher. The January report showed unemployment lowering and wage increases for many workers.
The index covered the last 1,000 points in an almost three-year roller-coaster ride, having hit 4,000 in April 2021.
Top issuers have their own funds that offer exposure to the S&P 500, which is considered to be a broad barometer of the market. Other S&P 500 ETFs include the iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund (VOO).
The Nasdaq 100, a tech-heavy index, is up 40% over the past year.
