Nasdaq Index, Dow Jones, S&P 500 News: Market Hits New Peaks as Momentum Builds

U.S. Stock Market Continues Record-Breaking Run

U.S. stock futures are currently advancing, aiming to extend the remarkable rise witnessed this week. The three major stock indexes, the Dow, S&P 500, and Nasdaq Composite, achieved record highs on Thursday, continuing a significant winning streak.

At 11:02 GMT, Dow futures are trading 40250.00, up 44.00 or +0.11%. The S&P 500 Index is at 5309.75, up 7.50 or +0.14% and the Nasdaq-100 Index is trading 18586.75, up 25.00 or +0.14%.

Market Performance on Thursday

On Thursday, the Dow led the gains with an approximate 0.7% increase, while the S&P 500 and Nasdaq Composite followed closely, adding about 0.3% and 0.2%, respectively. This marked the fourth consecutive day of growth for these indexes. Notably, the Dow is emerging as the standout performer, showing nearly a 2.8% uptick for the week, potentially its strongest since December.

Stock Highlights

Individual stocks are making significant moves. FedEx’s shares have surged by 13% in premarket activity following an earnings report that exceeded analysts’ expectations. On the contrary, Lululemon faces an 11% drop after releasing a weaker forecast, reflecting slowing growth in North America.

Reddit’s IPO Makes Waves

Reddit’s initial public offering has captured the market’s attention, with its shares soaring by 48% in their debut. Priced at $34 each, Reddit and its selling shareholders raised around $750 million. Closing with a market capitalization of approximately $9.5 billion, Reddit’s IPO emerges as a pivotal moment for tech stock offerings.

Comparative Market Valuation

Reddit’s valuation at IPO stands at about $6.5 billion, adjusted down from a previous $10 billion. Despite a 20% increase in annual sales in 2023, the company is still navigating a competitive landscape, with rivals including prominent tech and social media companies.

Federal Reserve’s Influence

The current market optimism is partly influenced by the Federal Open Market Committee’s outlook, anticipating three rate cuts this year. This forecast aligns with investors’ expectations, offering a balance amid recent inflation reports.

Short-Term Market Outlook

The U.S. stock market shows a bullish trend in the short term. The momentum from Thursday’s record highs, combined with strong individual stock performances and favorable federal policies, underpin this positive outlook.

Technical Analysis

E-mini S&P 500 Index futures are trading higher on Friday, putting it in a position to challenge yesterday’s record high at 5322.75 and the upper level of a rising wedge at 5332.00. Overtaking this level could fuel an acceleration to the upside.

On the downside, the nearest support is the rising wedge at 5210.75.