Stocks rose Friday and capped off a winning week fueled by better-than-expected economic growth and a pop in Tesla shares.
The Nasdaq Composite jumped 0.95% to settle at 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to finish at 33,978.08.
All the major averages posted a positive week and are on pace for a month of gains. The tech-heavy index rose 4.32% and closed out its fourth week of gains. It’s on pace for its best monthly performance since July. The S&P and Dow added 2.47% and 1.81%, respectively, this week.
Earnings season pressed on, with strong guidance boosting American Express shares by 10.5% despite a top-and bottom-line miss. Some chip stocks rose even as Intel slumped more than 6% on a dismal earnings report that missed expectations.
Tesla rose 11% Friday, and more than 33% for the week after reporting record revenue. It marked the electric vehicle stock’s best weekly performance since May 2013.
So far this year, markets have bucked 2022′s selloff trend. The Dow is up 2.5%, while the S&P has gained 6%. The Nasdaq has surged 11%.
“We’re putting the final touches on an extremely strong January on the heels of lower inflation, and an economy that’s hanging in there,” said Ryan Detrick, chief market strategist at Carson Group. “We’re not out of the woods though. We’ve still got the Fed next week, and they might want to throw some water on this rally.”
Investors weighed more economic data Friday ahead of next week’s Federal Reserve policy meeting. The personal consumption expenditures price index, excluding energy and food, showed prices rose 4.4% from a year ago, the Commerce Department said, and in line with the Dow Jones estimate. So-called PCE is a preferred inflation gauge for the Fed.
A better-than-expected fourth-quarter gross domestic product report Thursday also helped stoke hopes that the Fed may manage a soft landing.
These are some of the last data points before the central bank’s widely expected 25 basis point hike.
