The S&P 500 rose on Friday, and all the major averages headed for a winning week buoyed by better-than-expected economic growth and a rush in market darling Tesla.
The benchmark index rose 0.4%, while the Nasdaq Composite jumped 1.1%, supported by technology stocks. The Dow Jones Industrial Average was trading 71 points, or 0.2%, up.
Earnings season continued, with strong guidance boosting American Express Almost 12% though Maximum and minimum error. Some chip stocks rose even with Intel fell about 8% on a Dismal earnings report that exceeded expectations.
All major averages are positive for the week and month. The Dow Jones and the Standard & Poor’s are up 1.9% and 2.6% this week, respectively. The Nasdaq rose 4.5% and is set for its best monthly performance since July. Tesla rose 11% Friday, based on a weekly gain of more than 32% After reporting record revenue.
Markets so far this year bucked the trend to sell into 2022. The Dow Jones rose 2.6%, while the S&P rose 6.1%. The Nasdaq rose 11.3%.
“We’re finalizing a very strong January on the heels of lower inflation, and the existing economy there,” said Ryan Detrick, chief market strategist at The Carson Group. “We’re not out of the woods though. We still have the Fed next week, and they might want to throw some water on that rally.”
Investors weighed more economic data on Friday ahead of next week’s Fed policy meeting. The Commerce Department said the PCE price index, a preferred measure of inflation for the Fed, showed prices rising 4.4% from a year ago, in line with Dow Jones estimates.
Better than expected GDP report for the fourth quarter Thursday also helped fuel hopes that the Fed may manage a soft landing.
These are some of the last data points before the widely expected central bank hike of 25 basis points.