Key Takeaways
- The S&P 500 (SPX) surged towards 6,800, fueled by a return of dip-buyers in technology and semiconductor stocks, strong corporate earnings, and persistent hopes for Federal Reserve rate cuts.
- Qualcomm (QCOM) delivered an impressive fourth-quarter performance, reporting revenue of $11.27 billion and EPS of $3.00, both significantly exceeding analyst expectations.
- US Treasury Secretary Bessent conveyed optimism following a Supreme Court hearing on tariffs, suggesting potential clarity or favorable outcomes regarding trade policy.
- A looming threat of reduced scheduled capacity at major airports could begin Friday if a government shutdown deal is not reached, impacting air travel significantly.
The broader market saw a resurgence of risk appetite as dip-buyers re-entered the market following a recent tech-led pullback, propelling the S&P 500 (SPX) closer to the 6,800 mark. This upward momentum was largely driven by a strong performance in semiconductor stocks and a notable jump in Bitcoin prices. Robust corporate earnings and ongoing expectations for Federal Reserve interest rate cuts continued to underpin investor confidence, despite some lingering chatter about stretched valuations.
However, the bond market presented a contrasting picture, with Treasury yields climbing in response to hotter-than-expected services data. This suggests that while equity markets are pricing in future rate cuts, economic data points could still introduce volatility.
In corporate news, Qualcomm (QCOM) posted a strong fourth quarter, with revenue reaching $11.27 billion, comfortably surpassing estimates of $10.77 billion. The semiconductor giant also reported earnings per share (EPS) of $3.00, beating the anticipated $2.88. Full-year capital expenditures came in at $1.19 billion, largely in line with expectations, and the company has projected its first-quarter revenue.
On the policy front, US Treasury Secretary Bessent expressed considerable optimism after a Supreme Court hearing on tariffs, as reported by Fox Business. This sentiment could indicate a potentially favorable resolution or clearer path forward regarding the nation's tariff policies, which would be a significant development for international trade and businesses.
Meanwhile, a critical announcement from the USDOT (DOT) and FAANews is anticipated, warning of a potential reduction in scheduled capacity at major airports starting Friday. This drastic measure would be implemented if a government shutdown deal is not reached, posing a substantial disruption to air travel and the broader economy.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.