Can Equities Continue to Break Records?

Much of this week was somewhat range-bound, at least compared to the wild ride that Nvidia (NVDA 0.44% ) sparked the week before. Nevertheless, stocks continued their advance. The Nasdaq hit an all-time high close, breaking a record set in 2021. The S&P 500 also notched fresh new highs, and on Thursday it celebrated Leap Day by extending its monthly win streak to four

With the bulk of earnings season having passed, investors resumed focusing on inflation data and what the Federal Reserve’s response might be. Two weeks ago, markets sank on a higher-than-expected January CPI reading, even though January seasonal surges in inflation readings are not unusual. CPI tends to foreshadow PCE, so although Core PCE MoM came in on Thursday at 0.4% – the biggest monthly jump since January 2023, the reading was roughly in line with Street expectations, and the S&P 500 and Nasdaq both rose afterward. “There were no major revelations in the PCE numbers, but the market's reaction tells me there is still gas in the tank,” Lee remarked on Thursday.

Head of Technical Strategy Mark Newton has a similar opinion. In his view, “equity trends show no evidence of wavering. Until or unless last week’s lows are challenged (4946 for ^SPX 0.23% ), SPX very well can continue its rise into mid-March without much trouble, technically.”

The week’s market action also suggests that the rally is broadening. As Newton pointed out, “RSP 0.02% , the equal-weighted S&P 500, logged a new all-time high monthly and weekly close.” In fact, the equal-weighted S&P 500 outperformed the S&P 500 index this week.

Can Equities Continue to Break Records?

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Can Equities Continue to Break Records?
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