S&P 500 closes at a new all-time high as fresh data drives optimism for rate cuts

• The S&P 500 set an all-time high on Friday, closing above its previous high set two years ago.
• The Dow and Nasdaq also rose as traders digested strong economic data.
• The University of Michigan consumer confidence indicator jumped to its highest level since 2021.

Thanks for registering!

Access your favorite topics in a personalized feed while you're on the go.

download the application

Strong economic data propelled the S&P 500 to a record high on Friday, and markets became more optimistic about potential rate cuts by the Federal Reserve.

Shortly after trading began, the benchmark was already on track to surpass its all-time closing high of 4,796.56 set two years ago. And at midday, it surpassed its intraday record of 4,818.62.

The Dow Jones Industrial Average had already surpassed its previous high last month and set a new record on Friday. Meanwhile, the Nasdaq Composite outperformed other indexes as chipmakers drove the technology sector higher, but remains more than 4% off its highs.

The stock market rally came as the University of Michigan consumer confidence survey showed Americans are feel better about the economy and watch prices cool.

Inflation expectations for next year fell to 2.9%, the lowest since December 2020, giving the Fed more breathing room to ease monetary policy this year.

"The powerful increase shows that Americans are feeling the effects of lower inflation," said Robert Frick, an economist at Navy Federal Credit Union. "This is transmitted directly through prices at the pump, which have been falling since September, and less directly as wage increases have risen above the inflation rate. The strong labor market also strongly influences the view that Americans have of the economy in general.

Here is where the US indices were when the market closed at 4:00 pm on Friday:

Here's what else is happening:

In commodities, bonds and cryptocurrencies:

• Oil prices fell, with West Texas Intermediate fell 0.28% to $73.87 a barrel. Brent CrudeThe international benchmark index fell 0.23% to $78.88 a barrel.
• Gold rose 0.46% to $2,031.00 an ounce.
• He 10 year performance It rose 1 basis point to stand at 4.149%.
• bitcoin rose 2.35% to $41,876.