It’s the S&P 5,000! Closely watched S&P 500 stock index spikes through 5,000 points milestone but closes just under it – index has now DOUBLED since Covid low

  • The S&P 500 finally reached the milestone 5,000 level for the first time on February 8
  • Wall Street investors see promise when they look at U.S. companies’ earnings
  • Confidence grows the Federal Reserve will cut record high interest rates

The S&P 500 hit a record high of 5,000 in late trading on Thursday, but fell to a low of 4,998 just as markets closed.

The influential index tracks the performance of the 500 largest public companies in the US and provides a loose measure of the country’s broader economy.

Blockbuster gains from the likes of Amazon, Meta and NVIDIA in recent days have helped convince investors that the US has avoided a recession and that Americans are ready to spend.

On Thursday, one dominant stock that moved the needle was that of chipmaker Arm, which gained 48 percent after better-than-expected earnings.

The S&P 500 hit a record high of 5,000 on Thursday.  Pictured is a trader at the New York Stock Exchange dribbling a basketball

The S&P 500 hit a record high of 5,000 on Thursday. Pictured is a trader at the New York Stock Exchange dribbling a basketball

“It would be a good headline, but in perspective it’s another stop on this ridiculous rally that we’ve seen,” said Jay Woods, global chief strategist at Freedom Capital Markets, as reported by CNBC.

“I think the market is tiring, this rally is tiring,” he added.

The ongoing rally that has taken the S&P to the 5,000 level began in late October, when expectations that high interest rates could finally come down drove the price of government bonds higher.

Growth was also driven by a group of tech stocks known as the ‘Magnificent Seven’ – many of which boomed last year thanks to hype around AI.

This year, overall strong earnings for corporate America have been accompanied by continued expectations that the Federal Reserve will finally cut interest rates.

Doing so would reduce the high cost of borrowing for American consumers and companies, injecting more money into the economy and setting it up for further growth.