S&P 500 closes above 5,000 for first time ever, notches fifth straight winning week

Stocks rose on Friday after December’s revised inflation reading came in lower than first reported, and the S&P 500 closed above 5,000 level as strong earnings and economic news chugged on.

The Dow Jones Industrial Average slipped 90 points, or 0.2%, while the S&P 500 rose 0.5%. The Nasdaq Composite added 1.2%.

For the week, the S&P added 1.4%, while the Nasdaq’s gained 2.3%. Both indices notched their fifth straight winning week and 14th winning week in 15. The Dow finished 0.1% lower.

“At the end of the day, we’re still seeing whopping good news on an economic front, and the market is reacting to that,” said Dana D’Auria, co-chief investment officer at Envestnet. “The longer that story plays out, the more likely it seems to the market that we actually are sticking a landing here.”

A solid earnings season, easing inflation data and a resilient economy have charged 2024′s market rally, setting the S&P 500 up for a fifth consecutive week of gains. It’s also propelled the index above the 5,000 level after first touching above the milestone during Thursday’s session. The S&P first crossed 4,000 in April 2021.

“A close above this closely watched level will undoubtedly create headlines and further feed fear of missing out (FOMO) emotions,” said Adam Turnquist, chief technical strategist at LPL Financial. “Outside of a potential sentiment boost, round numbers such as 5,000 often provide a psychological area of support or resistance for the market.”

A revision lower in December’s consumer price index also helped sentiment. The government adjusted the figure to a 0.2% increase, down from a 0.3% increase initially reported. Core inflation figures, excluding food and energy, were the same. Treasury yields briefly traded lower