Broker Check
S&P 500 Breaks Losing Streak

S&P 500 Breaks Losing Streak

April 30, 2024

Last week, the S&P 500, which is a key stock market index, stopped its recent downward trend thanks to strong earnings reports from some big technology companies, known as the Magnificent Seven tech giants. These positive financial results eased worries about rising prices and a dip in factory orders, boosting confidence among investors. The S&P 500 went up by 2.68%, helping reduce its losses for April to 2.87%. Meanwhile, the Nasdaq Composite, another major stock index, climbed significantly by 4.23%, and the Dow Jones, yet another key index, increased by 0.67%.

In terms of inflation, the Core Personal Consumption Expenditures (PCE) index, which measures the prices people pay for goods excluding food and energy, remains high but showed a decrease to the lowest level in three years at 2.82% in March. However, over the past six months, this index has been rising at a rate of 3.0% annually, and even faster at 4.4% over the past three months.

Every major business sector saw gains last week, with technology, consumer services, and communication services leading the way. The sectors that grew the least were healthcare, energy, and materials. The best performing sectors so far this year have been communication services, energy, and financials.

Additionally, the interest rates on 10-year government bonds increased, and the U.S. Dollar Index, which measures the dollar against other currencies, dropped slightly by 0.1%. Gold prices fell by more than 2.7%, while the price of U.S. crude oil went up by 1.98%, closing the week at $83.85 per barrel.

The views stated herein are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

S&P 500 – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.