Stock Market Today: S&P 500 Snaps Weekly Losing Streak
AI stocks were big winners on Friday after C3.ai posted solid earnings and guidance.
Stocks closed higher Friday, putting an end to a string of weekly losses for the broad market. This stretch of negative price action resulted in stiff February losses for the major benchmarks, which may have sparked a relief rally in recent sessions. Declining Treasury yields and a solid reading on the U.S. services sector also lifted investor sentiment to end the week.
Taking a closer look at today's economic data shows the S&P Global U.S. Services purchasing managers index (PMI) moved back into expansion territory in February, rising to 50.6 from January's 46.8. And while the Institute for Supply Management's services PMI ticked lower in February, to 55.1 from 55.2, it still came in above the consensus estimate.
"U.S. stocks rallied after another impressive ISM services index suggests that part of the economy remains healthy and as Treasuries rally after the Fed's [semi-annual] monetary policy report [to Congress] said 'high inflation is not becoming entrenched,'" says Edward Moya, senior market strategist at currency data provider OANDA.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In single-stock news, shares of C3.ai (AI) shot up 33.7% after earnings. In its fiscal third quarter, the enterprise artificial intelligence software company reported a narrower-than-expected loss of 6 cents per share on better-than-anticipated revenue of $66.7 million. C3.ai also gave upbeat revenue guidance for the current quarter.
"As we enter Q4 FY 23, we are seeing tailwinds from improved business optimism and increased interest in applying C3 AI solutions to address an increasing range of applications across a broad range of industries," said Thomas Siebel, CEO of C3.ai, in the company's press release. "The overall business sentiment appears to be improving. This is a dramatic change from what we experienced in mid-2022." Today's rally in C3.ai created tailwinds for other AI stocks, including Nvidia (NVDA, +2.5%) and Snowflake (SNOW, +5.1%).
As for the major benchmarks, the Nasdaq rose 2.0% to 11,689, the S&P 500 gained 1.6% to 4,045, and the Dow added 1.2% to 33,390. For the week, the indexes gained between 1.7% and 2.6%, with the S&P 500 scoring its first weekly win since Feb. 3 and the Dow its first since Jan. 27.
Jobs data rolls in next week
So what's in store for next week? The consumer will remain in focus with several retailers, including Dick's Sporting Goods (DKS), on the earnings calendar. Additionally, Fed Chair Jerome Powell will give his semi-annual testimony in front of Congress. The two-day event begins on Tuesday, with Powell appearing before the Senate Banking Committee.
But it's the state of the labor market that will likely garner the most attention, with several data points slated for release – namely, Friday's nonfarm payrolls report. "All eyes will be on Friday's employment report after the year started with a strong 517,000 nonfarm payrolls added in one single month," says Larry Adam, chief investment officer for Private Client Group at Raymond James. January's blowout jobs report "caught the market by surprise last month. The upcoming jobs report should give the market some clarity on whether the surge was a seasonable blip or an indication that the labor market remains red hot," Adam says, adding that this (in addition to the next CPI report) will be a "crucial piece of data" at the next Fed meeting.
-
5 Bruce Springsteen Quotes Every Retiree Should Live ByThe 'Boss' of rock-and-roll has a lot to say about living and getting old gracefully.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
In the 2% Club and Have a Pension? Beware the 60/40 PortfolioIncome from your pension, savings and Social Security could provide the protection bonds usually offer, freeing you up for a more growth-oriented allocation.
-
How the Stock Market Performed in the First Year of Trump's Second Term
Six months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Dow Adds 292 Points as Goldman, Nvidia Soar: Stock Market TodayTaiwan Semiconductor's strong earnings sparked a rally in tech stocks on Thursday, while Goldman Sachs' earnings boosted financials.
-
Stocks See First Back-to-Back Losses of 2026: Stock Market TodayRising geopolitical worries and a continued sell off in financial stocks kept pressure on the main indexes on Wednesday.
-
The December CPI Report Is Out. Here's What It Means for the Fed's Next MoveThe December CPI report came in lighter than expected, but housing costs remain an overhang.
-
How Worried Should Investors Be About a Jerome Powell Investigation?The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed MeetingThe December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
Nasdaq Takes a Hit as the Tech Trade Falters: Stock Market TodayThe Dow Jones Industrial Average outperformed on strength in cyclical stocks.
-
Dow, S&P 500 Rise to New Closing Highs: Stock Market TodayWill President Donald Trump match his Monroe Doctrine gambit with a new Marshall Plan for Venezuela?
