All-Time High for the S&P 500

The S&P 500 posted a new record-high close on Thursday. The benchmark index gained 1.06% for the week as investors pondered over mainly optimistic corporate revenues, as an unexpectedly sturdy economic expansion and decelerating inflation nourished prospects of a soft landing.

Economic figures released Thursday depicted the U.S. economy growing at a pace swifter than predicted in the final quarter, with additional indications of easing inflationary pressures bolstering expectations that a recession will be averted.

The annual growth rate of GDP in the world's premier economy clocked 3.3% in the last quarter of the year, decelerating from 4.9% in the preceding quarter, but substantially outstripping the 2% forecasted by economists. The surge was propelled by vigorous consumer spending. For the second month in a row, the core personal consumption expenditure prices - the Federal Reserve's preferred inflation metric - held steady at 2%.

Communication Services Lead the Pack in January      

One sector is doing better than information technology in January: communication services.

This sector has regained the lead with a new rally from its flagship companies: Meta Platforms (META), Alphabet-Google (GOOG), and Netflix (NFLX). The three components together account for more than 45% of the communication services index.

Meta Platforms gained 11.35% year-to-date (up 2.79% for the week) as the social networking giant has moved on from the metaverse to 'open source' AI strategy. Alphabet-Google (GOOG, up 9.13% YTD, up 3.93% WTD) is riding the same wave with its Gemini AI model. The most powerful version is designed to run in data centers while the smallest targets mobile devices.

Lastly, in another category, Netflix stocks (NFLX) jumped 18.11% for the week (up 17.16% YTD). The streaming giant has added far more paying subscribers in the fourth quarter than Wall Street expected. The firm signed up a hearty 13.12 million users within the three-month span ending in December. It also witnessed an approximately 12% annual rise in its revenue to $8.83 billion, surpassing estimates.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.