The S&P 500 index rose 1.6% last week to a fresh closing high in a broad climb led by the consumer discretionary sector.
The S&P 500 ended Friday’s session at 6,966.28, its highest closing level ever. The market benchmark also reached an intraday record on Friday.
Shares of homebuilders and other companies connected with the housing market were among the S&P 500’s top weekly gainers after President Donald Trump said he was instructing his “representatives” to buy $200 billion in mortgage bonds.
“This will drive mortgage rates down, monthly payments down, and make the cost of owning a home more affordable,” Trump said in a social media post.
Economic data came in mixed as December nonfarm payrolls in the US rose by 50,000, missing the 70,000 increase expected according to a survey compiled by Bloomberg. The unemployment rate, however, decreased to 4.4% in December from a downwardly revised 4.5% the month before. A 4.5% rate had been expected.
US consumer sentiment improved in January to its highest point since September, but remained subdued compared with year-earlier levels amid inflation and labor market concerns, according to preliminary results from a University of Michigan survey.
The consumer discretionary sector had the largest percentage increase for the week, climbing 5.8%, followed by a 4.8% rise in materials and a 2.5% advance in industrials. Communication services, energy and consumer staples also rose by more than 2% each.
Utilities was the lone decliner for the week, dropping 1.6%.
The earnings season kicks off this week with reports expected from companies including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), Morgan Stanley (MS) and Goldman Sachs (GS).
Economic data will include the December consumer and producer price indexes, in addition to December new and existing home sales and a delayed report on November retail sales.
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