U.S. stocks seem poised for a higher open on Friday, buoyed by optimism surrounding upcoming earnings reports as the tech reporting season kicks off next week. Encouragement is also drawn from Congress’s agreement on a bill to fund the federal government until early March. Additionally, the day’s trading direction may be influenced by a few Federal Reserve official speeches, a consumer sentiment reading, and regional bank earnings.
As sentiment takes a positive turn, the focus shifts to the S&P 500 Index, with anticipation of surpassing its previous all-time high of 4,796.56 set in early January 2022.
Cues From Thursday’s Trading:
Tech optimism fueled a market rebound on Thursday following positive fourth-quarter earnings from Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Further strength was added by Atlanta Fed President Raphael Bostic’s comments hinting at a potential rate cut in the third quarter.
The major averages opened higher but followed divergent paths, with the Nasdaq Composite and S&P 500 maintaining gains throughout the session. The Dow Industrials initially stayed mostly in the red before moving into positive territory late in the afternoon, breaking a three-session losing streak.
The Nasdaq 100 Index, consisting of the 100 largest non-financial tech stocks, closed Thursday’s session at a new record.
Economic readings revealed a surprise drop in jobless claims for the week ended Jan. 13, a larger-than-expected contraction in Philadelphia region manufacturing activity, and a mixed housing starts report.
S&P 500 rally leaders included IT, communication services, industrial, and IT services stocks, while defensive utility and real estate stocks ended the session lower.
US Index Performance On Thursday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +1.35% | 15,055.65 |
| S&P 500 Index | +0.88% | 4,780.94 |
| Dow Industrials | +0.54% | 37,468.61 |
| Russell 2000 | +0.55% | 1,923.65 |
Analyst Color:
Following Thursday’s strong economic data, Independent Advisor Alliance Chief Investment Officer Chris Zaccarelli said, “Given the underlying strength of the US economy, it’s difficult to get too bearish at this point.
“There are plenty of headwinds and causes for concern – interest rates are high, equity…
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