The major averages finished on a higher note with the S&P 500 surpassing its old record high set in 2022. The Dow Jones Industrial Average finished up 395 points or 1.05%. The S&P 500 rose 58 points or 1.23% while the Nasdaq Composite climbed 255 points or 1.70%

Investors have returned to buying the tech leaders of 2023. Apple rose a percent after jumping 3% yesterday on an upgrade. The AI and chip sector remain on fire. Tiawan Semi was up a percent after jumping nearly 10% yesterday on strong earnings. Today, Super Micro Computer surged 35% on higher guidance. Nvidia rose 4% as Meta spends billions on their AI chips to upgrade their systems.  

Treasury yields were quiet today but remain elevated following better than expected economic data this week. Weekly jobless claims surprised economists Thursday by coming in at their lowest level since September 2022, in a further indication of the strength of the U.S. jobs market. Housing data out today shows the higher interest rates are biting into sales. December home sales were 6.2% lower than in the same month a year earlier. Inventory fell 11.5% from November to December while full-year home sales for 2023 came in at 4.09 million units, the lowest tally since 1995.

On the earnings front, insurance company Travelers rose 6% while Schlumberger gained 2% after beating on top and bottom lines. Financial firm, Ally Financial rose 10% after reporting strong quarterly results and the sale of a division to Synchrony Financial. In the retail space, Wayfair jumped 10% after announcing job cuts.

For the week, the major averages were in the green once again as the Nasdaq and tech stocks led the rally with a more than 2% gain on the week.