Market Bulls on Record: S&P 500 Surges Amid Chip Rally and Job Report Impacts

The S&P 500 reached a record high following a lackluster jobs report that bolstered expectations of Federal Reserve interest rate cuts. Chip stock rallies led gains, while healthcare and financial sectors dipped. Consumer discretionary and cyclicals outperformed, and energy stocks surged post-Venezuelan political developments.

The S&P 500 achieved an intraday record on Friday, fueled by weaker-than-expected employment data that has investors betting on Federal Reserve rate cuts. A rally in chip stocks further pushed the index upwards, showcasing resilience despite mixed economic indicators. The Labor Department report highlighted a slowdown in job growth but a drop in unemployment.

Trade sentiment leaned towards a halt in interest rate reductions for January, yet a considerable easing by 2026 remains anticipated. Mark Hackett, Nationwide's chief market strategist, noted that investor reactions were tempered, aligning with expectations. Chip stocks, notably Broadcom and Lam Research, significantly boosted the S&P 500.

Broader gains were seen with the Philadelphia SE Semiconductor index soaring and utility stocks leading. Yet sectors like healthcare and finance saw minor declines. Consumer discretionary and cyclical sectors showed strength, with geopolitical developments influencing energy sectors. Generous gains in mortgage lenders followed housing market interventions announced by President Trump.

(With inputs from agencies.)