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
Be a smarter, better informed investor.
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.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
How Prepaid Verizon Phone Service Works and When It's a Smart ChoiceExplore the differences between Verizon Prepaid and Verizon Postpaid plans—costs, perks, flexibility, and when going prepaid makes sense.
-
Try This One-Minute Test to Uncover Hidden Health RisksFinding out this little-known fact about your body could reveal your risk of heart disease and more. It's a simple, free check for healthy aging.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
Trade Uncertainty Sparks Whipsaw Session: Stock Market TodayVolatility is making a cameo here in mid-October, a generally positive month marked by its historic stock market events.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Dow Adds 587 Points as Stocks Bounce: Stock Market TodayThe main indexes rebounded sharply Monday after President Trump took a calmer stance toward China.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.