:max_bytes(150000):strip_icc()/latestGainersLosers2-91dba90727d84710a4a9f0464e9ad30f.png "Index Hits Record High as Tech Stocks Rally")
Key Takeaways
- The S&P 500 jumped 1.2% on Friday, Jan. 19, 2024, with a rally in the tech sector helping the benchmark index close at its record high.
- Semiconductor stocks added to recent gains amid a bullish outlook on opportunities in the AI space.
- Shares of health insurers extended losses posted in the previous session when Humana reduced its profit forecast, citing higher medical costs.
U.S. equities regained their momentum in the second half of the four-day trading week, as the S&P 500 advanced 1.2% to reach its all-time closing high on Friday.
Strength in the tech sector helped the Nasdaq add 1.7% and the Dow closed the session with gains of 1.1%.
Semiconductor stocks have been a key driver of the recent rally, with a bullish forecast from Taiwan Semiconductor Manufacturing (TSM) earlier in the week fueling optimism about artificial intelligence (AI) applications. Advanced Micro Devices (AMD) led the way for the S&P 500 on Friday, jumping 7.1%.
AMD was not the only chipmaker adding to gains. Broadcom (AVGO) shares rose 5.9% to a record high after Goldman Sachs reinstated coverage of the stock with a buy rating and a $1,325 price target, forecasting strong growth for Broadcom’s high-speed networking and custom compute segments.
Shares of The Travelers Companies (TRV) also hit an all-time high on Friday, soaring 6.7% after the insurance provider reported a 101% year-over-year increase in core income in the fourth quarter. Higher premiums and investment income, alongside lower payouts, drove the strong performance.
PayPal (PYPL) shares advanced 6.0%, adding to gains posted earlier in the week when CEO Alex Chriss discussed the payment provider’s commitment to profitable growth and innovation.
Shares of health insurers moved lower, extending losses posted in the previous session after Humana (HUM) reduced its profit outlook, citing higher medical costs. Shares of Molina Healthcare (MOH) fell 4.1%, marking the weakest performance on the S&P 500, while Centene (CNC) shares dropped 3.2%. Other health insurance stocks also posted losses.
Dollar General (DG) shares slipped 2.8% following reports that the discount retailer is the target of a lawsuit alleging irregular pricing practices. The class action suit filed in New York claims that price tags for merchandise on the company’s store floors do not match the prices charged at registers.
Shares of PPG Industries (PPG) dropped 2.5% after the maker of paints and coatings issued weaker-than-expected guidance. The company anticipates softness in the do-it-yourself (DIY) market in the U.S. and Canada during the first half of the year.