S&P 500 Surges to Fresh All-Time High of 5,000 Amid Stellar Earnings and Declining Jobless Claims

Crypto News- S&P 500 surges to fresh all-time high of 5,000 amid Stellar earnings and declining jobless claims: The S&P 500 surges to a historic high of 5,000 on Thursday, marking a significant milestone before retracing slightly. This brief moment of triumph was spurred by a flurry of corporate earnings releases and a closely watched report on unemployment claims.

Market data from MarketWatch indicates that the S&P 500 closed at 4,995.06 and has since nudged up by 0.06% to reach 4,997.91. Over the past month, the index has seen a robust 4.48% climb, with year-to-date gains standing at an impressive 4.78%. Investors have been rewarded handsomely over the past year, enjoying returns of 22.18%.

Analysis from LSEG suggests that a majority of companies listed in the index have delivered stellar quarterly results. More than half of S&P 500 firms have unveiled their earnings, with an overwhelming 80% surpassing analyst forecasts.

S&P 500 Surges to Fresh All-Time High of 5,000 Amid Stellar Earnings and Declining Jobless Claims

Positive developments in the labor market also contributed to the S&P 500’s upward trajectory. Despite some notable layoffs, particularly within the tech sector, initial unemployment claims dipped below expectations. The number of individuals filing for benefits decreased by 9,000 for the week ending February 3, amounting to a seasonally adjusted total of 218,000. This figure was significantly lower than the 22,000 projected by economists surveyed by Reuters. Notable declines in claims were reported in states such as New York, Oregon, Pennsylvania, Ohio, and California.

Shares of prominent companies like The Walt Disney Company soared by 11.5% after reporting stronger-than-anticipated quarterly profits, driven by cost-saving measures implemented across its theme parks. Similarly, fashion powerhouse Ralph Lauren witnessed a remarkable 16.8% surge in its stock price following impressive holiday sales, particularly in the Asian market.

S&P 500 Hits Historic 5,000 Mark Amid Earnings Rally and Optimistic Jobs Data

The bullish sentiment surrounding the S&P 500 was underscored by its performance relative to key technical indicators such as the 50-day and 200-day moving averages (MA). The percentage of stocks trading above both averages surged past the 50% mark in mid-November, signaling an uptrend. By December, nearly 90% of index components had surpassed the 50-day MA. However, the likelihood of another rally beyond the 5,000 mark hinges largely on technical data. If less than 50% of S&P 500 constituents remain above their 50-day MA, another ascent above 5,000 would appear improbable.

The optimism seen in the traditional stock market spilled over into the realm of cryptocurrencies, with Bitcoin breaching the $45,000 threshold for the first time since the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). At the time of writing, Bitcoin is trading above $46,400, registering a gain of more than 4% within 24 hours.

This surge in Bitcoin’s value may bolster confidence among skeptics regarding ETFs. Nonetheless, there is a prevailing sense of bullishness in the market, with analysts like Tedtalksmacro suggesting that Bitcoin is unlikely to revisit the $41,800-$42,000 range.